Use the Following to Answer Questions

question 354

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 much is Alex's profit at the profit-maximizing output?

• A) $3,500
• B) -$300
• C) $700
• D) $1,700

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Definitions:

Incremental Theorists

Individuals who believe that abilities can be developed through dedication and hard work, emphasizing growth and learning.

Fundamental Attribution Error

A bias in social psychology where individuals overestimate the role of dispositional factors and underestimate situational factors in explaining other people's behavior.

Dispositional Explanations

An approach to explaining behavior by attributing it to internal traits or personality factors of the individual.

Reformulated Learned Helplessness

A theory suggesting that individuals learn they have no control over unpleasant or harmful situations, which leads to passive and depressive responses, revised to include the role of cognitive factors.