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Mary Magnolia in Problem 4 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 $3 per unit, how many bouquets per month should she sell in the short run?
This document contains various important questions and their appropriate answers in the subject field of Economics.
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