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

question 109

Essay

(Table: Variable Costs for Lawns) Look at the table Variable Costs for Lawns.During the summer, Alex runs a lawn-mowing service, and lawn-mowing is a perfectly competitive industry.The table shows his variable costs for lawn-mowing and the number of lawns mowed.His only fixed cost is $1,000 for the mower.His variable costs include fuel, his time, and mower parts.He calculates the variable costs as shown in the table.What is Alex's break-even price?
A.$100.00
B.$10.00
C.$50.00
D.$27.50

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Definitions:

Socially Efficient Quantity

The level of production or consumption that maximizes social welfare, taking into account all external costs and benefits.

Demand Curve

A graphical representation of the relationship between the price of a good and the quantity demanded by consumers.

Deadweight Loss

A loss of economic efficiency that can occur when the equilibrium in a market is not achieved or is not achievable.

Society

A group of individuals involved in persistent social interaction, or a large social group sharing the same geographical or virtual territory, typically subject to the same political authority and dominant cultural expectations.