Question
Your t-shirt company sees that shirts of a certain variety have demand function q = -90p + 900 where q is the number of
Your t-shirt company sees that shirts of a certain variety have demand function q = -90p + 900 where q is the number of shirts you can sell in one week if you charge $p per shirt. You have fixed costs of $300 per week and the T-shirts cost you $3 each. Assuming you make enough t-shirts to meet demand, find the weekly cost as a function of the unit price p. C(p) = Hence, find the weekly profit as a function of p. P(p) = Determine the unit price (in dollars per T-shirt) you should charge to obtain the largest possible weekly profit. p = $ per T-shirt What is the largest possible weekly profit (in dollars)?
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Intermediate Microeconomics
Authors: Hal R. Varian
9th edition
978-0393123975, 393123979, 393123960, 978-0393919677, 393919676, 978-0393123968
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