Your friend Hector owns a coffee shop in town, which is a competitive market in your community. Hector knows you're taking an economics course, so Hector asks you what quantity of coffee to produce in order to maximize profit. Which is the best response to Hector's question? Choose one: A. Produce where the marginal revenue is equal to the market price for each coffee sold. B. Produce the quantity where the marginal cost of producing the last unit equals the marginal revenue of producing that unit. C. Produce the maximum quantity the size of the coffee shop will allow. D. Produce the quantity that minimizes the average total cost of production.

On january 1, 2018, wetick optometrists leased diagnostic equipment from southern corp. which had purchased the equipment at a cost of $2,256,342. the lease agreement specifies six annual payments of $490,000 beginning january 1, 2018, the beginning of the lease, and at each december 31 thereafter through 2022. the six-year lease term ending december 31, 2023 (a year after the final payment), is equal to the estimated useful life of the equipment. the contract specifies that lease payments for each year will increase on the basis of the increase in the consumer price index for the year just ended. thus, the first payment will be $490,000, and the second and subsequent payments might be different. the cpi at the beginning of the lease is 120. southern routinely acquires diagnostic equipment for lease to other firms. the interest rate in these financing arrangements is 12%. (fv of $1, pv of $1, fva of $1, pva of $1, fvad of $1 and pvad of $1) prepare the appropriate journal entries for wetick and southern to record the lease at its beginning.