Use the Following to Answer Questions

question 200

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 revenue at the profit-maximizing output?

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

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Definitions:

Home Appliances

Electrical or mechanical devices designed to perform domestic tasks, such as cooking or cleaning.

Visual

Pertaining to sight or the ability to see, often used in the context of graphical or pictorial representation of information.

Flowcharts

Diagrams that represent a process or system using symbols and arrows to show the flow and sequence of steps.

Organization Charts

Diagrams that show the structure of an organization and the relationships and relative ranks of its parts and positions/jobs.