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

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Definitions:

Production Supervisory Salaries

The wages paid to personnel responsible for overseeing and managing the production process within a manufacturing or production facility.

Interest Costs

Interest costs are the expenses incurred by borrowing funds, calculated as the interest rate multiplied by the principal amount of the debt.

Selling Costs

Expenses directly related to the sale of a product or service, including advertising, sales commissions, and packaging costs.

FOB Destination

A shipping term indicating that goods are delivered at the seller’s expense to a specific location, with ownership transferring to the buyer upon delivery.