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Mary Magnolia from Your Workbook Has Variable Costs Equal to Y2/F

Question 41

Multiple Choice

Mary Magnolia from your workbook 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 600 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 $4 per unit, how many bouquets per month should she sell in the short run?


A) 600
B) 1,800
C) 300
D) 1,200
E) 1,320

Correct Answer:

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