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Mary has variable costs equal to VC = (y^2) / 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 $3 per unit, how many bouquets per month should she sell in the short run?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M9464505

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