Use the Following to Answer Questions

question 13

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, which is made up of 50 identical firms. 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. Which of the following is a point on the industry short-run supply curve?

• A) P = $40; Q = 60
• B) P = $10; Q = 10,000
• C) P = $35; Q = 2,500
• D) P = $25; Q = 40