Use the Following to Answer Question

question 168

Multiple Choice

Use the following to answer question:
-(Table: Variable Costs for Lots) Use Table: Variable Costs for Lots.During the winter,Alexa runs a snow-clearing service in a perfectly competitive industry.Assume that costs are constant in each interval;so,for example,the marginal cost of clearing each of the lots from 1 through 10 is $20.Also assume that she can only plow the quantities of the lots given in the table (and not numbers in between) .Her only fixed cost is $1,000 for a snowplow.Her variable costs include fuel,her time,and hot coffee.If the price per cleared lot is $14,how many lots should Alexa clear?

• A)0
• B)40
• C)50
• D)20

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Definitions:

Specific Performance

A legal remedy in contracts law where a court orders the party who breached the contract to perform the specific act agreed upon in the contract.

Quarterly Sales

A measurement of a company's sales revenue generated in a three-month period.

Proximal

Near or close to a point of reference, often used in physical, temporal, or relational contexts.

Distal

Describes something that is situated away from the center or point of reference.