Use the Following to Answer Question

question 51

Multiple Choice

Use the following to answer question:
-(Table: Variable Costs for Lawns) Use 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;so,for example,the marginal cost of mowing each of the lawns from 1 through 10 is $10.Also assume that he can only mow the quantities of lawn given in the table (and not numbers in between) .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 per unit at the profit-maximizing output?

• A)-$10
• B)$10
• C)$34
• D)$14

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Definitions:

December Expenses

The total amount of money spent during the month of December for various purposes such as rent, utilities, payroll, and supplies.

Mail Order Retailers

Businesses that sell products to customers through catalogues, websites, or other forms of distance communication, with goods being delivered by mail.

Total Sales

The sum of all sales revenue within a given period.

Sales

The total revenue generated from the sale of goods or services by a company within a specific period.