Delilah's Daisies is a flower shop operating in the perfectly competitive flower industry. Delilah's chooses the optimal quantity of bouquets to sell by setting marginal revenue equal to marginal cost, which occurs when the quantity of bouquets is 10. At that quantity, Delila's average variable costs are $3 and average fixed costs are $4. If the price of a boquet is $6, what strategy is both feasible and optimal for Delilah in the short run? O Shut down and pay fuxed costs Operate with a loss. O Shut down and pay variable costs. O Operate with a profit.

Delilah's Daisies is a flower shop operating in the perfectly competitive flower industry. Delilah's chooses the optimal quantity of bouquets to sell by setting marginal revenue equal to marginal cost, which occurs when the quantity of bouquets is 10. At that quantity, Delila's average variable costs are $3 and average fixed costs are $4. If the price of a boquet is $6, what strategy is both feasible and optimal for Delilah in the short run? O Shut down and pay fuxed costs Operate with a loss. O Shut down and pay variable costs. O Operate with a profit.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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