Use the Following to Answer Question

question 226

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 with 100 firms.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.Which point falls on the industry short-run supply curve?

• A)P = $5,Q = 100
• B)P = $8,Q = 1,000
• C)P = $40,Q = 1,100
• D)P = $70,Q = 5,000

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Definitions:

Ambitious

Describes a person with a strong desire to achieve success, often through hard work, persistence, and determination.

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A personality type characterized by a laid-back, less competitive, and more reflective demeanor, often contrasted with Type A personality.

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