Use the Following to Answer Question

question 94

Multiple Choice

Use the following to answer question:
Table 10.7
-(Table 10.7) Assume that the marginal cost of coffee is $0.50 and the marginal cost of cake is $0.50. Which pricing scheme leads to the highest producer surplus?

• A) $3.25 for coffee and cake
• B) $1.50 for cake and $2.00 for coffee
• C) $3.75 for both coffee and cake or $2.50 for cake and $2.50 for coffee
• D) $5.00 for both coffee and cake or $2.75 for cake and $2.75 for coffee

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Definitions:

Dermis

The thick layer of living tissue below the epidermis that forms the true skin, containing sweat glands, hair follicles, and connective tissue.

Stratum Basale

The deepest layer of the epidermis, consisting of basal cells that continuously divide and produce new skin cells.

Melanocytes

Cells located in the bottom layer of the skin's epidermis that produce melanin, the pigment responsible for skin color.

Cuboidal Cells

Epithelial cells with a cube-like shape, often found lining glands and ducts.