(Table: Variable Costs for Garden Maintenance) Use Table: Variable Costs for Garden Maintenance. During the summer, Emma runs a gardening service in a perfectly competitive industry. Assume that costs are constant in each interval; so, for example, the marginal cost of clearing weeds from each of the gardens 1 through 10 is $20. Also assume that she can only tend to the number of gardens given in the table (and not numbers in between). Her only fixed cost is $1,000 for a weeding machine. Her variable costs include fuel, her time, and hot coffee. At what price does Emma's short-run supply curve start? Table: Variable Costs for Garden Maintenance Quantity of Lots | Variable Costs 0 | $0 10 | 200 20 | 300 30 | 500 40 | 750 50 | 1,100 60 | 2,100 a) $15 b) $50 c) $200 d) $42
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In the context of a perfectly competitive market, a firm's short-run supply curve shows the quantity of goods it will supply at different prices, starting from the point where price equals marginal cost (MC). The firm will not supply goods at prices below this Show more…
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(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 $70, how much is Alex's total cost at the profit-maximizing output? $3,500 $2,800 $2,100 $1,500 Table: Variable Costs for Lawns Quantity of Lawns Variable Costs 0 $0 10 100 20 300 30 500 40 1,100 50 1,800 60 2,900
Amy, Bill, and Carla all mow lawns for money. Each of them operates a different lawn mower. The accompanying table shows the total cost to Amy, Bill, and Carla of mowing lawns. $$ \begin{array}{cccc} \begin{array}{c} \text { Quantity of } \\ \text { lawns mowed } \end{array} & \begin{array}{c} \text { Amy's } \\ \text { total cost } \end{array} & \begin{array}{c} \text { Bill's } \\ \text { total cost } \end{array} & \begin{array}{c} \text { Carla's } \\ \text { total cost } \end{array} \\ 0 & \$ 0 & \$ 0 & \$ 0 \\ 1 & 20 & 10 & 2 \\ 2 & 35 & 20 & 7 \\ 3 & 45 & 30 & 17 \\ 4 & 50 & 40 & 32 \\ 5 & 52 & 50 & 52 \\ 6 & 53 & 60 & 82 \end{array} $$ a. Calculate Amy's, Bill's, and Carla's marginal costs, and draw each of their marginal cost curves. b. Who has increasing marginal cost, who has decreasing marginal cost, and who has constant marginal cost?
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