Use the Following to Answer Questions

question 335

Multiple Choice

Use the following to answer questions:
-(Table: Variable Costs for Lots) Look at the table Variable Costs for Lots. During the winter, Alexa runs a snow-clearing service in a perfectly competitive industry. Assume that costs are constant in each interval; that is, the variable cost of clearing anywhere from 1 through 10 lots is $200. 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 $30, what is Alexa's profit at the optimal output?

• A) $1,200
• B) $1,500
• C) $0
• D) -$550

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Definitions:

Racism

Racism is a belief or doctrine that inherent differences among the various human racial groups determine cultural or individual achievement, usually involving the idea that one's own race is superior and has the right to dominate others.

Entertainment Industry

Comprises companies and individuals that produce and distribute content for mass entertainment, including movies, music, television, and live performances.

Charles G. Finney

A leader in the Second Great Awakening in the United States, known for his innovative revival techniques and emphasis on individual choice in salvation.

Salvation

Salvation in religious contexts refers to the deliverance from sin and its consequences, achieved through faith or divine means in various faith traditions.