Use the Following to Answer Question

question 232

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,how many lots should Alexa clear?

• A)50
• B)40
• C)30

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Definitions:

Spectator

An observer who watches or attends an event or activity without taking part in it.

Law-Of-Numbers

A principle suggesting that larger numbers of trials or samples lead to more stable and accurate averages and outcomes.

Group Think

A situation in collective decision-making processes where the pressure to agree or fit in causes outcomes that are irrational or lacking in effectiveness.

Cohesiveness

The degree to which members of a group are attracted to each other and motivated to stay in the group, often leading to improved performance and satisfaction.