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Mary Magnolia Has Variable Costs Equal to Y2/F, Where Y

Question 19

Multiple Choice

Mary Magnolia has variable costs equal to y2/F, where y is the number of bouquets she sells per month and where F is the number of square feet of space in her shop.If Mary has signed a lease for a shop with 800 square feet, if she is not able to get out of the lease or to expand her store in the short run, and if the price of a bouquet is $6 per unit, how many bouquets per month should she sell in the short run?


A) 800
B) 400
C) 2,400
D) 3,600
E) 2,640

Correct Answer:

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