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

question 14

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 $5 per unit, how many bouquets per month should she sell in the short run?

• A)2,500
• B)500
• C)1,000
• D)3,750
• E)2,750

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