Use the Following to Answer Question

question 245

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 $70,how many lawns will Alex mow?

• A)20
• B)30
• C)40
• D)50

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Definitions:

Government Contracts

Government contracts are agreements between businesses and government entities for the provision of goods and services.

Herfindahl-Hirschman Index

A measure of market concentration used to evaluate the potential for anti-competitive behavior, calculated by summing the squares of the market shares of all firms within the industry.

Industry

A collective term for all manufacturing and production activities within an economy.

Firm(s)

Business entities involved in commercial, industrial, or professional activities, aiming to generate profits from their operations.