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.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![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 fixed costs.
O Operate with a loss.
Shut down and pay variable costs.
O Operate with a profit.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd63a16c9-c4a6-4688-9649-184a055146fa%2F65f73730-6dc0-4553-a508-a01fb40eb099%2F385bsk9_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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 fixed costs.
O Operate with a loss.
Shut down and pay variable costs.
O Operate with a profit.
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