In the Lemonade Stand Industry, Lucia Is Representative of a Low-Cost

question 77

Multiple Choice

In the lemonade stand industry, Lucia is representative of a low-cost provider and Carlos is representative of a high-cost provider. The minimum average total cost of the high-cost producers is $5. The low-cost producers have a long-run total cost curve given by LTC = 5Q -1.5Q² + 0.33Q³, where LMC = 5 - 3Q + Q². In this case, Lucia can earn an economic rent of $____ for being a low-cost producer.

• A) 9
• B) 7.50
• C) 6
• D) 4.50

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Definitions:

Substance Abusers

Individuals who excessively use drugs or alcohol, often resulting in addiction or harmful consequences.

Group Unity

The sense of cohesion and solidarity among members of a group, encouraging collective action and support.

Workplace Performance

The measure of how effectively an employee fulfills their duties and contributes to the goals of the organization.

Substance Abuse

The harmful or hazardous use of psychoactive substances, including alcohol and illicit drugs, leading to addiction or other negative consequences.