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

Question

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

Quizplus · Accepted Answer

To eliminate deadweight loss and maximize efficiency, Lenny should set the price equal to the marginal cost, which is $2. At this price, according to the demand table (not provided, but based on the information), he would sell 8 cups, aligning with the principles of economic efficiency where price equals marginal cost.

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