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

question 9

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 1,400 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:

Closed Shop Provisions

Labor agreement terms requiring that employees be members of a labor union as a condition of employment, now illegal in many places under "right to work" laws.

Bargaining Book

A document or set of documents used by negotiators during union-management negotiations that contains facts, figures, and proposals for discussion.

Negotiation Record

A detailed account of negotiation proceedings, including the proposals, discussions, and agreements made between parties.

Public Sector

The portion of the economy composed of government services and enterprises, including employees who work for government entities.