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

question 13

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

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Definitions:

Marginal Cost

The additional expense incurred from creating an extra unit of a product, emphasizing how production costs change with the level of output.

Marginal Benefit

The supplementary value or advantage gained by using or generating one more quantity of a good or service.

Marginal Benefits

The additional benefits or advantages gained from an increase in an activity or the consumption of a good or service.

Flood-Control Projects

Initiatives and constructions undertaken to manage and prevent flooding in vulnerable areas, typically involving barriers, dams, and water diversion systems.