(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:

Liquidated Damages

A predetermined amount of money that must be paid as compensation for failure to fulfill a contractual obligation.

Unconscionable

Refers to something that is extremely unfair or unjust, often to the extent that it shocks the conscience.

Consequential Damages

Indirect or secondary losses suffered as a consequence of a breach of contract, not directly related to the breach but a result of the specific circumstances of the plaintiff.

Woodworking

The craft of making objects, structures, or sculptures by shaping, cutting, and joining wood.