(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 $60, how much is Alex's total cost at the profit-maximizing output? Table: Variable Costs for Lawns Quantity Variable Costs of Lawns 0 SO 10 100 20 300 30 500 40 1,100 50 1,800 60 2.900 $1,100 $60 $2,400 ○ $2,100
(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 $60, how much is Alex's total cost at the profit-maximizing output? Table: Variable Costs for Lawns Quantity Variable Costs of Lawns 0 SO 10 100 20 300 30 500 40 1,100 50 1,800 60 2.900 $1,100 $60 $2,400 ○ $2,100
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:(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 $60, how much is Alex's total cost at the
profit-maximizing output?
Table: Variable Costs for Lawns
Quantity
Variable Costs
of Lawns
0
SO
10
100
20
300
30
500
40
1,100
50
1,800
60
2.900
$1,100
$60
$2,400
○ $2,100
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