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Table: Demand for Lennys Coffee Price Quantity of Coffee of Coffee (per cup) Sold (daily cups) $10(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, his profit-maximizing level of output is _____ cups at _____ per cup.

8; $3

4; $6

5; $5

3; $7

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Answer #1

Option 2. From the below table we can observe that the profit maximizing level of output is 4 cups at $6 per cup.

Price

Quantity

TR

TC

Profit=TR-TC

10

0

0

0

0

9

1

9

2

7

8

2

16

4

12

7

3

21

6

15

6

4

24

8

16

5

5

25

10

15

4

6

24

12

12

3

7

21

14

7

2

8

16

16

0

1

9

9

18

-9

0

10

0

20

-20
0 0
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