(Table: Demand for Lenny's Coffee) Look at the Table Demand

question 3

Essay

(Table: Demand for Lenny's Coffee) Look at the 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 the government forced Lenny to charge a price that eliminated deadweight loss, Lenny would charge a price of per cup and sell
________ cups.
A.$0; 10
B.$2; 8
C.$4; 6
D.$5; 5

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Definitions:

Standard Labour Rate

The predetermined cost associated with labor per unit of time, used as a benchmark for budgeting and cost control.

Actual Total Labour Cost

The actual amount spent on wages and salaries for employees directly involved in the production process.

Actual Hours

The real number of hours worked or spent on a specific task, project, or production process.

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the standard quantity expected, multiplied by the standard cost per unit.