< Question 31 of 50Table: Variable Costs for LawnsTable: Variable Costs for LawnsQuantityVarlable Costsof LawnsSO10201003005001,1001,8002,90030405060Use Table: Variable Costs for Lawns. During the summer, Alex runs a lawn-mowing service, and lawn-mowing is a perfectlycompetitive industry with 100 firms. Assume that costs are constant in each interval; so, for example, the marginal cost ofmowing each of the lawns from 1 through 10 is $10. Also assume that he can only mow the quantities of lawn given in thetable (and not numbers in between). His only fixed cost is $1,000 for the mower. His variable costs include fuel, his time, andmower parts. Which point falls on the industry short-run supply curve?OP= $5, Q = 100OP= $40, Q = 1,100OP=$8, Q = 1,000OP= $70, Q = 5,000

The short-run supply curve will pass through the minimum point for Average Total costsFC = 1000

Table: Variable Costs for Lawns Table: Variable Costs for Lawns Quantity of Lawns Varlable Costs S0 100 300 500 1,100 1,800 2,900 10 20 30 40 50 60 Use Table: Variable Costs for Lawns. During the summer, Alex runs a lawn-mowing service, and lawn-mowing is a perfectly competitive industry with 100 firms. Assume that costs are constant in cach 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 fucl, his time, and mower parts. Which point falls on the industry short-run supply curve?

Table: Variable Costs for Lawns Table: Variable Costs for Lawns Quantity of Lawns Varlable Costs S0 100 300 500 1,100 1,800 2,900 10 20 30 40 50 60 Use Table: Variable Costs for Lawns. During the summer, Alex runs a lawn-mowing service, and lawn-mowing is a perfectly competitive industry with 100 firms. Assume that costs are constant in cach 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 fucl, his time, and mower parts. Which point falls on the industry short-run supply curve?

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Cost Of Production

Section: Chapter Questions

Problem 3CQQ

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