Use the Following to Answer Questions

question 51

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 $70, how many lawns will Alex mow?

• A) 20
• B) 30
• C) 40
• D) 50

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Definitions:

Standard Oil Trust

A conglomerate of interconnected oil companies controlled by John D. Rockefeller in the late 19th and early 20th centuries, known for its monopolistic practices.

Exxon

An American multinational oil and gas corporation, one of the world's largest publicly traded energy providers and chemical manufacturers.

Mobil

An American oil company now merged with Exxon to form ExxonMobil, one of the world's largest publicly traded international oil and gas companies.

Chevron

An American multinational energy corporation, one of the world's leading integrated energy companies, involved in every aspect of the oil and gas industry.