Use the Following to Answer Question

question 258

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 $40,how much is Alex's profit per unit at the profit-maximizing output?

• A)-$10.00
• B)$10.00
• C)$23.33
• D)-$20.00

Understand how rational decisions are made by weighing marginal benefits against marginal costs.

Grasp the impact of incentives on individual and economic choices.

Understand the fundamental role of utilities in economic theory.

Acknowledge that using resources for one purpose reduces their availability for other purposes.

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Definitions:

Agricultural Society

A society primarily engaged in agriculture, focusing on farming and livestock raising as its main economic activities.

Revolutionary Technology

Innovations that radically change existing industries, economies, and societal practices.

Genetic Engineering

The direct manipulation of an organism's genes using biotechnology to alter its characteristics, often for purposes like improving health, enhancing resistance to diseases, or modifying physical traits.

New Life Forms

Organisms that have recently been discovered, created, or significantly altered through processes such as genetic engineering.