Use the Following to Answer Question

question 245

Multiple Choice

Use the following to answer question:
-(Table: Variable Costs for Lawns) Use Table: Variable Costs for Lawns.During the summer,Alex runs a lawn-mowing service,and lawn-mowing is a perfectly competitive industry.Assume that costs are constant in each interval;so,for example,the marginal cost of mowing each of the lawns from 1 through 10 is $10.Also assume that he can only mow the quantities of lawn given in the table (and not numbers in between) .His only fixed cost is $1,000 for the mower.His variable costs include fuel,his time,and mower parts.If the price for mowing a lawn is $70,how many lawns will Alex mow?

• A)20
• B)30
• C)40
• D)50

---

Definitions:

Factor

An element or condition that actively contributes to the production of a result, often used in the context of mathematics or economic analysis.

Accounts Receivable

The amount of money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Credit Card Expense

Expenses incurred by using a credit card, typically involving interest charges and other fees.

Administrative Expense

Costs related to the general operation and administration of a business, including salaries of executive staff, office supplies, and utilities, but not directly tied to production or sales.