Use the Following to Answer Question

question 47

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 per unit at the optimal output?

• A)$60
• B)$42
• C)$35
• D)$18

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Definitions:

GI Bill Of Rights

U.S. legislation passed in 1944 to provide benefits to World War II veterans, including funding for education, home loans, and unemployment benefits.

Bretton Woods Conference

International meeting held in the town of Bretton Woods, NewHampshire, in 1944 in which participants agreed that the American dollar would replace the Britishpound as the most important international currency. The conference also created the World Bank andInternational Monetary Fund to promote rebuilding after World War Ⅱ and to ensure that countriesdid not devalue their currencies.

Financial Leader

An individual or entity recognized for their influence and innovation in the financial sector, including banking, investments, and economic policy.

World War II

A global conflict that lasted from 1939 to 1945, involving many of the world's nations and resulting in significant geopolitical changes and the establishment of the United Nations.