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You've decided to sell sweatshirts for the upcoming game. You project that at a price of $29.32 per sweatshirt, you will be able to sell
You've decided to sell sweatshirts for the upcoming game. You project that at a price of
$29.32
per sweatshirt, you will be able to sell
190
shirts. In order to sell
260
sweatshirts, you would need to lower the price to
$24.28
per sweatshirt. In order to produce the sweatshirts, it costs you
$2.22
per sweatshirt on top of fixed costs of
$330.
What price gives a marginal profit of $0 per item.
Assume linear demand.
You should charge a price of
$$$-how much
per sweatshirt in order to maximize your profit.
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