You produce T-shirts, and it costs $3 to make each shirt. If you choose a price of $5 for each shirt, then you will _____.
lose money
earn a profit
just cover your costs
The answer is earn a profit. You produce a T-shirt and its cost is 3 dollars to be able to make one. Now, you choose a price of 5 dollars for each shirt. Therefore: 5 dollars price - 3 dollars capital = 2 dollars profit. SO, you have earned profit
