Use the Following to Answer Questions

question 173

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, and lawn-mowing is 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. If the price for mowing a lawn is $60, how much is Alex's total cost at the profit-maximizing output?

• A) $60
• B) $1,100
• C) $2,400
• D) $2,100

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Definitions:

Private Ownership

The legal possession of property or goods by individuals or corporations, not by the state or public entities.

Cognitive Surplus

The combination of time, technology, and digital connectivity that enables society to contribute to collaborative projects, often leading to significant advancements or creations.

Creative Commons

A nonprofit organization that provides free licenses allowing creators to legally share their work with predefined conditions.

Digital Divide

The disparity in access to information and communication technologies among people, families, companies, and regions based on varying socio-economic statuses.