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Table-variable costs for lawns

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(Table: Variable Costs for Lawns)

Look at the table Variable Costs for Lawns. During the summer Alex runs a lawn-mowing service, and lawn-mowing is a perfectly competitive industry made up of 100 identical firms. The table shows his variable costs for lawn-mowing and the number of lawns mowed. Alex's 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 at the profit-maximizing output?

  • $3,500
  • -$300
  • $700
  • $1,700

Reference no: EM131288532

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