Use the Following to Answer Questions

question 13

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, which is made up of 50 identical firms. 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. Which of the following is a point on the industry short-run supply curve?

• A) P = $40; Q = 60
• B) P = $10; Q = 10,000
• C) P = $35; Q = 2,500
• D) P = $25; Q = 40

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Definitions:

Random Sampling

A method of selecting a sample from a population in such a way that each member has an equal chance of being chosen.

Survey Researchers

Professionals who design surveys, collect data, and analyze results to gain insights and information on a wide range of topics.

Positive Correlation

A statistical relationship between two variables where both variables move in the same direction.

Intelligence and Academic Success

Refers to the theoretical link suggesting that higher levels of intelligence may contribute positively to one's performance in academic settings.