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Use the Following Information to Answer Questions SMC=120.005Q+0.0000008Q2S M C = 12 - 0.005 Q + 0.0000008 Q ^ { 2 }

Question 84

Multiple Choice

Use the following information to answer Questions.
Sport Tee Corporation manufactures T-shirts bearing the logos of professional baseball and football teams. The wholesale market for sport T-shirts is perfectly competitive.The manager forecasts the wholesale price of T-shirts next year to be $7.00. The firm's estimated marginal cost is SMC=120.005Q+0.0000008Q2S M C = 12 - 0.005 Q + 0.0000008 Q ^ { 2 } where Q is the number of T-shirts produced and sold each month. Sport Tee Corporation will have a fixed cost of $2,000 per month.
-To maximize profit how many T-shirts should be produced and sold each month?


A) 1,000
B) 2,000
C) 3,000
D) 4,000
E) 5,000

Correct Answer:

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