Use the Following to Answer Questions

question 231

Multiple Choice

Use the following to answer questions:
-(Table: Variable Costs for Lawns) Look at the table Variable Costs for Lawns. During the summer, Alex runs a lawn-mowing service in a perfectly competitive industry. Assume that costs are constant in each interval; that is, the variable cost of mowing 1 through 10 lawns is $100. His only fixed cost is $1,000 for the mower. His variable costs include fuel, his time, and mower parts. What is Alex's break-even price?

• A) $100.00
• B) $10.00
• C) $50.00
• D) $27.50

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Definitions:

SAT

A standardized test widely used for college admissions in the United States, assessing reading, writing, and mathematical reasoning.

ACT

A widely used achievement test measuring skills and knowledge taught in high school that is used as an entrance exam for undergraduate studies.

Cognitive Ability

A term often used in place of the construct of intelligence.

MCAT

The Medical College Admission Test, a standardized examination for prospective medical students in the United States and Canada.