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Question 224

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Use the following to answer question: Use the following to answer question: -(Table: Demand for Lenny's Coffee) Use Table: Demand for Lenny's Coffee.Lenny's Café is the only source of coffee for hundreds of miles in any direction.If Lenny's marginal cost of selling coffee is a constant $2 and he has no fixed costs,and the government forces Lenny to charge a price that eliminates deadweight loss,Lenny will charge _____ per cup and sell _____ cups. A) $0;10 B) $2;8 C) $4;6 D) $5;5
-(Table: Demand for Lenny's Coffee) Use Table: Demand for Lenny's Coffee.Lenny's Café is the only source of coffee for hundreds of miles in any direction.If Lenny's marginal cost of selling coffee is a constant $2 and he has no fixed costs,and the government forces Lenny to charge a price that eliminates deadweight loss,Lenny will charge _____ per cup and sell _____ cups.


A) $0;10
B) $2;8
C) $4;6
D) $5;5

Correct Answer:

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