Mary Magnolia in Problem 4 Has Variable Costs Equal to

question 3

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 1,400 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) 1,400
• B) 3,150
• C) 700
• D) 2,100
• E) 2,310

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Definitions:

Single Product

Relates to a business strategy focused on the development, production, and sale of only one particular product, often to ensure quality and efficiency.

Two Companies

Refers to separate corporate entities, often mentioned in contexts of mergers, partnerships, or comparisons.

Customer Lifetime Value

A prediction of the total value a business will derive from their entire relationship with a customer, emphasizing the long-term importance of customer satisfaction and loyalty.

Acquisition

The process where one company purchases another company or its assets.