Edward the entrepreneur takes 2 hours to cut a lawn, and he cuts 1,000 lawns per year. He uses solar-powered equipment (truck and mower) that will last forever- and can be sold at any time for $40,000. Edward could earn $11 per hour as a pedicurist. The interest rate is 10 percent. Given his current output level, compute his average cost of cutting lawns. ○ $20 ○ $24 ○ $22 ○ $28 O $26
Edward the entrepreneur takes 2 hours to cut a lawn, and he cuts 1,000 lawns per year. He uses solar-powered equipment (truck and mower) that will last forever- and can be sold at any time for $40,000. Edward could earn $11 per hour as a pedicurist. The interest rate is 10 percent. Given his current output level, compute his average cost of cutting lawns. ○ $20 ○ $24 ○ $22 ○ $28 O $26
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter7: Economies Of Scale And Scope
Section: Chapter Questions
Problem 7.5IP
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Question
![Edward the entrepreneur takes 2 hours to cut a lawn, and he
cuts 1,000 lawns per year. He uses solar-powered equipment
(truck and mower) that will last forever- and can be sold at
any time for $40,000. Edward could earn $11 per hour as a
pedicurist. The interest rate is 10 percent.
Given his current output level, compute his average cost of
cutting lawns.
$20
$24
$22
$28
$26](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2740d158-e447-4adb-8714-da7b31b3dde5%2Ffe4d3405-b45a-441d-91c8-7ecdfe70d11c%2Fexeskf_processed.png&w=3840&q=75)
Transcribed Image Text:Edward the entrepreneur takes 2 hours to cut a lawn, and he
cuts 1,000 lawns per year. He uses solar-powered equipment
(truck and mower) that will last forever- and can be sold at
any time for $40,000. Edward could earn $11 per hour as a
pedicurist. The interest rate is 10 percent.
Given his current output level, compute his average cost of
cutting lawns.
$20
$24
$22
$28
$26
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