Mary Magnolia in Problem 4 Has Variable Costs Equal to

question 1

Multiple Choice

Mary Magnolia in Problem 4 has variable costs equal to , 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

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Definitions:

Annual Interest

The percentage of a sum of money charged for its use over a year.

Zero-Coupon Bond

A debt security that does not pay interest (coupon) during its life but is sold at a discount from its face value, with the total face value being paid to the holder at maturity.

Tax Bracket

The range of income taxed at a specific rate within a progressive tax system, affecting how much tax individuals or entities owe based on their income.

Yield

The income returned on an investment, expressed as a percentage of the cost of the investment.