Use the Following to Answer Question

question 130

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 to clear a lot is $60,what is Alexa's profit or loss at the optimal output?

• A)$3,000
• B)$1,100
• C)$900
• D)$3,850

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Definitions:

Consumer Advocacy

The act of protecting consumers' interests, especially by lobbying for rights and standards in the goods and services offered to them.

Mean Temperature

The average temperature calculated over a specified time period, typically derived by summing the temperatures over that period and dividing by the number of measurements.

Refrigerators

Appliances used for keeping food and drinks cold, they work by removing heat from the interior and expelling it to the environment outside.

Beverage Company

A business entity that manufactures, markets, and sells drinks, including both alcoholic and non-alcoholic products.