Use the Following to Answer Questions

question 164

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 $40, how much is Alex's profit per unit at the profit-maximizing output?

• A) -$10.00
• B) $10.00
• C) $23.33
• D) -$20.00

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Definitions:

Generalization

The process whereby a response is given to similar stimuli beyond the original stimulus learned.

Acquisition

In psychology, the phase of learning during which a response is established.

Acquiring

The act of obtaining ownership or control of something, often relating to assets or companies.

Enduring Information

Knowledge or data that remains applicable and useful over a long period of time, withstanding changes in context or circumstances.