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:

Publishing Houses

Publishing Houses are companies or organizations dedicated to the production and distribution of books, magazines, and other literary or educational materials.

Influence Tactics

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