Use the Following to Answer Question

question 230

Multiple Choice

Use the following to answer question:
-(Table: Variable Costs for Lawns) Use Table: Variable Costs for Lawns.During the summer,Alex runs a lawn-mowing service,and lawn-mowing is a perfectly competitive industry.Assume that costs are constant in each interval;so,for example,the marginal cost of mowing each of the lawns from 1 through 10 is $10.Also assume that he can only mow the quantities of lawn given in the table (and not numbers in between) .His only fixed cost is $1,000 for the mower.His variable costs include fuel,his time,and mower parts.If the price for mowing a lawn is $60,how much is Alex's profit per unit at the profit-maximizing output?

• A)$7.50
• B)$32.50
• C)$20.00
• D)$60.00

---

Definitions:

Ineffective Marketing

Marketing efforts that fail to achieve the desired impact or results in reaching the target audience.

Synergistic Benefits

Advantages resulting from the merging or collaboration of organizations, often leading to enhanced efficiency, economies of scale, or improved market position.

Merger

The combination of two or more companies into a single entity, typically with the aim of achieving operational efficiencies or entering new markets.

Strategic Benefits

The long-term advantages gained from specific business decisions or activities, contributing to the achievement of company objectives.