Use the Following to Answer Question

question 224

Multiple Choice

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

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Definitions:

Standardized Exam

A type of test that is administered and scored in a consistent manner to ensure fairness and to measure students' performance against common criteria.

English Section

Typically refers to a component or part of a standardized test or examination that assesses language proficiency, especially in areas such as grammar, comprehension, and writing.

Self-Reference Effect

The tendency for individuals to better remember information when it is related personally to them.

Endowment Effect

The finding that items gain in value to the person who owns them.