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? OP= $40, Q = 10 P = $10, Q = 20 P = $25, Q = 40 P = $16, Q = 0
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? OP= $40, Q = 10 P = $10, Q = 20 P = $25, Q = 40 P = $16, Q = 0
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Table: Variable Costs for Lots
Quantity
of Lots
Variable Costs
10
20
So
200
300
30
500
40
750
50
60
1,100
2,100
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?
O P = $40, Q = 10
OP= $10, Q = 20
P = $25, Q = 40
P = $16, Q = 0
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