(Table: Variable Costs for Lots) Look at the Table Variable

question 206

Essay

(Table: Variable Costs for Lots) Look at the table Variable Costs for Lots.During the winter, Alexa runs a snow-clearing service, and snow clearing is a perfectly competitive industry.The table provided shows her variable costs for snow clearing and number of lots cleared.Her only fixed cost is $1,000 for a snowplow.Her variable costs include fuel, her time, and hot coffee.If the price to clear a lot is $60, how many lots should Alexa clear?
A.50
B.40
C.30
D.20

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Definitions:

Wilshire 5000

A metric assessing the performance of all equity securities based in the U.S. for which price information is easily accessible.

DJIA

Stands for Dow Jones Industrial Average, which is a stock market index that measures the stock performance of 30 large companies listed on stock exchanges in the United States.

DAX

The Deutscher Aktienindex, a major stock market index consisting of the 30 major German blue chip companies trading on the Frankfurt Stock Exchange.

Bankers' Acceptances

Short-term debt instruments issued by a company that is guaranteed by a commercial bank.