40. T-Shirt Profit The latest demand equation for your Yoda vs. Alien T-shirts is given by q = -40x + 600, where q is the number of shirts you can sell in one week if you charge $x per shirt. The Student Council charges you $400 per week for use of their facilities, and the T-shirts cost you $5 each. Find the weekly cost as a function of the unit price x. Hence, find the weekly profit as a function of x, and determine the unit price you should charge to obtain the largest possible weekly profit. What is the largest possible weekly profit?
40. T-Shirt Profit The latest demand equation for your Yoda vs. Alien T-shirts is given by q = -40x + 600, where q is the number of shirts you can sell in one week if you charge $x per shirt. The Student Council charges you $400 per week for use of their facilities, and the T-shirts cost you $5 each. Find the weekly cost as a function of the unit price x. Hence, find the weekly profit as a function of x, and determine the unit price you should charge to obtain the largest possible weekly profit. What is the largest possible weekly profit?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question 40
Transcribed Image Text:40. T-Shirt Profit The latest demand equation for your Yoda
vs. Alien T-shirts is given by
q = -40x + 600,
where q is the number of shirts you can sell in one week if
you charge $x per shirt. The Student Council charges you
$400 per week for use of their facilities, and the T-shirts
cost you $5 each. Find the weekly cost as a function of the
unit price x. Hence, find the weekly profit as a function of x,
and determine the unit price you should charge to obtain the
largest possible weekly profit. What is the largest possible
weekly profit?
Expert Solution
Step 1
Demand function: q=-40x+600
Total Cost=Fixed Cost+Variable Cost
Fixed Cost=$400
Variable cost=$5x
TC=400+5x
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