You own a T-shirt company that has done so well that the class has decided to expand its operations. You plan to open a store near campus, in competition with several other stores. You must therefore sell your shirts at or near the prevailing price of $15 each. You can make a profit as long as the selling price exceeds the average cost of producing each shirt. To determine profitable production levels, you need to know your anticipated average cost, which will be a function of your production level. 7. You can make a profit as long as you can sell the shirts for more than it costs to produce them. Because of the nearby competition, your selling price is fixed at $15. Write an inequality that can be used to determine your profitable levels of production. 8. Show a graphical solution to your inequality in #7 with everything labeled. Use the answer to explain the profitable levels of production.
You own a T-shirt company that has done so well that the class has decided to expand its
operations. You plan to open a store near campus, in competition with several other stores. You
must therefore sell your shirts at or near the prevailing price of $15 each. You can make a profit
as long as the selling price exceeds the average cost of producing each shirt. To determine
profitable production levels, you need to know your anticipated average cost, which will be a
function of your production level.
7. You can make a profit as long as you can sell the shirts for more than it costs to produce
them. Because of the nearby competition, your selling price is fixed at $15. Write an
inequality that can be used to determine your profitable levels of production.
8. Show a graphical solution to your inequality in #7 with everything labeled. Use the
answer to explain the profitable levels of production.
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