Question $11$

Beth is a $2$nd grader who sells lemonade at the street corner in your neighborhood. It costs Beth $20$ cents to make every cup of lemonade. She has no fixed costs. The reservation prices of $10$ people who stop by Beth's lemonade stand everyday is given in the table below. Beth knows the distribution of reservation prices $($i$.$e$.,$ Beth knows the person with the highest reservation price is willing to pay $\backslash (\backslash$$ $1\backslash ),$ the next highest reservation price is $\backslash (\backslash$$ $0\mathrm{.}90\backslash ),$ and so on$)$ but she does not know any specific individual's reservation price.

Consider the socially efficient equilibrium. Which of the following statement is false?

Recall that social economic surplus is maximized when $\backslash ($ P$=$M C $\backslash ).$

Beth will produce $9$ lemonades.

Beth will charge $20$ cents per lemonade.

Beth's economic profit and producer's surplus is equal to zero.

The buyer's consumer's surplus is equal to zero.