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Business, 20.11.2020 16:40 briannawoods13

The price elasticity of demand for senior citizens purchasing coffee from McDonald's is βˆ’5, while non-senior citizens have a price elasticity of demand equal to βˆ’1.25. If it costs McDonald's $0.02 to produce a coffee, the optimal price for a cup of coffee for non-senior citizens and the resultant marginal cost under third-degree price discrimination are:.A) $0.004 and $0.02.B) $0.02 and $0.80.C) $0.10 and $0.02.D) $10 and $0.20.

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The price elasticity of demand for senior citizens purchasing coffee from McDonald's is βˆ’5, while no...
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