Leonora (aka Lenny) is the only producer of gourmet coffee in Durville, If Leonora's marginal cost of selling a cup of coffee is a constant $1, she has no fixed costs, and the government forçes Leonora to charge a price that eliminates deadweight loss, Leonora will charge per cup and sell cups. Table: Demand for Lenny's Coffee Price Quantity of Coffee of Coffee (per cup) Sold (daily cups) $10 9. 1 3. 6. 4. 4. 3. 2. 8. 6. 10 O A. $2: 8 O B. $1: 9 OC. 50: 10 O D. $0: 0 (he will shut down) O E. $4: 6
Leonora (aka Lenny) is the only producer of gourmet coffee in Durville, If Leonora's marginal cost of selling a cup of coffee is a constant $1, she has no fixed costs, and the government forçes Leonora to charge a price that eliminates deadweight loss, Leonora will charge per cup and sell cups. Table: Demand for Lenny's Coffee Price Quantity of Coffee of Coffee (per cup) Sold (daily cups) $10 9. 1 3. 6. 4. 4. 3. 2. 8. 6. 10 O A. $2: 8 O B. $1: 9 OC. 50: 10 O D. $0: 0 (he will shut down) O E. $4: 6
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Leonora (aka Lenny) is the only producer of gourmet coffee in Durville. If Leonora's marginal cost of selling a cup of coffee is a constant $1, she has no fixed costs, and the government forces Leonora to charge a price that
eliminates deadweight loss, Leonora will charge
per cup and sell
cups
Table: Demand for Lenny's Coffee
Price
Quantity
of Coffee
of Coffee
(per cup)
Sold (daily cups)
$10
8.
3.
6.
6.
1
10
O A. $2: 8
O B. $1: 9
O C. 50: 10
O D. $0: 0 (he will shut down)
O E. $4: 6
1:03 PM](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F366602af-7c3f-4349-a64e-7ff2e270aa8f%2F25cdc6cb-4f8c-4401-a05e-4cae086e6ce2%2Fq3hm6io_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Leonora (aka Lenny) is the only producer of gourmet coffee in Durville. If Leonora's marginal cost of selling a cup of coffee is a constant $1, she has no fixed costs, and the government forces Leonora to charge a price that
eliminates deadweight loss, Leonora will charge
per cup and sell
cups
Table: Demand for Lenny's Coffee
Price
Quantity
of Coffee
of Coffee
(per cup)
Sold (daily cups)
$10
8.
3.
6.
6.
1
10
O A. $2: 8
O B. $1: 9
O C. 50: 10
O D. $0: 0 (he will shut down)
O E. $4: 6
1:03 PM
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