Use the Following to Answer Questions

question 285

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 $60, what is Alexa's profit per unit at the optimal output?

• A) $60
• B) $42
• C) $35
• D) $18

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Definitions:

Visceral Mass

The concentration of body organs (viscera) located above the foot in mollusks.

Digestive Tract

The series of organs in the human body where food is ingested, digested, absorbed, and waste is expelled.

Gills

Respiratory organs found in many aquatic organisms that extract oxygen from water and expel carbon dioxide.

Cilia

Microscopic, hair-like projections on the surface of some cells that are capable of movement and function in locomotion, feeding, or sensory perception.