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Sport Tee Corporation manufactures T - shirts bearing the logos of professional baseball and football teams. The wholesale market for sport T - shirts is
Sport Tee Corporation manufactures Tshirts bearing the logos of
professional baseball and football teams. The wholesale market for
sport Tshirts is perfectly competitive. The manager forecasts the
wholesale price of Tshirts next year to be $ The firm's estimated
marginal cost is
where is the number of Tshirts produced and sold each month.
Sport Tee Corporation will have a fixed cost of $ per month.
a What is the Average variable cost function for Sport Tee?
b To maximize profit how many Tshirts should be produced and
sold each month?
c At the profitmaximizing level of output, what is the total
revenue?
d What is the monthly profit?
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