Profit-maximizing level of output total revenue will be

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Sport Tee Corporation manufactures T-shirts bearing the logos of professional football teams. The wholesale market for fport T-shirts is perfectly competitve. The manager forecasts the wholesale price of T-shirts next year to be $7.00. The firm's estimated marginal cost is SMC = 12 - 0.005Q + 0.0000008Q2 where Q is the number of T-shirts produced and sold each month. Sport Tee Corporation will have a fixed cost of $2000 per month. At the profit-maximizing level of output total revenue will be

a. $10,000

b. $15,000

c. $20,000

d. $25,000

e. $35,000

Reference no: EM131238813

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