Asked by
Angie Guevara
on Oct 27, 2024
Verified
(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
Short-Run Supply Curve
A graphical representation showing how the quantity supplied varies with price in the short term, when at least one input is fixed.
Snow-Clearing Service
A service that provides snow removal from public and private spaces to ensure safety and accessibility during winter months.
Marginal Cost
The cost of producing one additional unit of a good or service, important in decision-making processes regarding output levels.
- Elucidate the function of marginal cost within the decision-making framework of a company.
- Examine the supply curve dynamics of both a single firm and the entire industry within a perfectly competitive market.
Verified Answer
PL
Learning Objectives
- Elucidate the function of marginal cost within the decision-making framework of a company.
- Examine the supply curve dynamics of both a single firm and the entire industry within a perfectly competitive market.