# Economics

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The price elasticity of demand for senior citizens purchasing coffee from McDonald's is -5 while non senior citizens have a price elasticity of demand equal to -1.25. If is cost McDonald's \$0.02 to produce a coffee, the optimal price for a cup of coffee for non senior citizens and 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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