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:

Peripheral Nerve

Nerves located outside of the brain and spinal cord, responsible for transmitting information between the central nervous system and the rest of the body.

Stimuli

External factors or events that provoke a response in biological organisms, essential for behavior and learning.

Receptors

Special structures or cells in the body that receive and process signals from stimuli or drugs, often triggering a biological response.

Environment

Surroundings.