Use the Following to Answer Question

question 126

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,what is Alexa's profit at the optimal output?

• A)$1,200
• B)$450
• C)$0
• D)-$550

---

Definitions:

Sensible Risk Taking

The act of undertaking risks that are well-calculated and have the potential for positive outcomes, often contrasted with reckless risk-taking.

Big Risks

Actions or decisions in any context that carry a significant potential for negative outcomes but also potentially high rewards.

Democratic Leader

A person in charge who confers final authority on the group.

Product Development

The creation of new products or enhancement of existing ones, from idea through design, testing, and finally to market introduction.