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

Question 20

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 1,000 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 $3 per unit, how many bouquets per month should she sell in the short run?


A) 1,500
B) 500
C) 2,250
D) 1,000
E) 1,650

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