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

question 218

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, what is Alexa's profit or loss at the optimal output?
A.$3,000
B.$1,100
C.$900
D.$3,850

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Definitions:

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Herbert Simon

An influential scholar in the realms of economics, psychology, and computer science, known for his work on decision-making and artificial intelligence.

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A theoretical concept of a person who makes rational decisions by maximizing utility or profit based on limited resources.

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