Use the Following to Answer Questions

question 335

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 $30, what is Alexa's profit at the optimal output?

• A) $1,200
• B) $1,500
• C) $0
• D) -$550

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Definitions:

William Lloyd Garrison

An American abolitionist, journalist, suffragist, and social reformer who is best known for his editorship of the abolitionist newspaper The Liberator and for being one of the founders of the American Anti-Slavery Society.

African Colonization

The process by which European powers occupied, controlled, and exploited the continent of Africa, fundamentally reshaping its societies, borders, and economies from the 19th century to the mid-20th century.

American Society

The body of individuals who live in the United States, characterized by diverse cultures, social practices, and values.

Equality

The state of being equal, especially in status, rights, and opportunities.