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:

Domestic Output

The total value of goods and services produced within a country's borders in a specific time period.

GDP

Gross Domestic Product is the sum market value of all final goods and services produced domestically in a country within a specific period.

Foreign Students

Students who pursue their education in a country different from their country of citizenship, often for higher education.

Trade Balance

The variance in value between a country's imported and exported goods and services.