Use the Following to Answer Question

question 126

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 $30,what is Alexa's profit at the optimal output?

• A)$1,200
• B)$450
• C)$0
• D)-$550

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Definitions:

Embalming

The process of preserving a body from decay, originally practiced by the Egyptians for preservation of bodies for the afterlife.

Decompose

The natural process of breaking down organic matter into simpler compounds by the action of bacteria and fungi.

Shipped By Plane

The process of transporting goods and products to their destination via aircraft, often used for items that require rapid delivery.

Cremation Practices

The method of disposing of a dead body through burning, leading to the reduction of the body to ashes.