Use the Following to Answer Question

question 198

Multiple Choice

Use the following to answer question:
-(Table: Variable Costs for Lots) Use 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;so,for example,the marginal cost of clearing each of the lots from 1 through 10 is $20.Also assume that she can only plow the quantities of the lots given in the table (and not numbers in between) .Her only fixed cost is $1,000 for a snowplow.Her variable costs include fuel,her time,and hot coffee.Which point falls on Alexa's short-run supply curve?

• A)P = $40,Q = 10
• B)P = $10,Q = 200
• C)P = $25,Q = 40
• D)P = $16,Q = 0

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