Artsy t-shirts sells 100000 shirts a year priced at 14 each, Ask an Expert

Economics

Artsy T-Shirts sells 100,000 shirts a year, priced at $14 each. The company can produce any number of shirts at a constant cost of $10 each. It is considering expanding its sales by lowering the price to $12.

What minimum increase in sales would be necessary in order to justify this expansion?

Firms that are successful sometimes take their profitability as a signal that they should expand. Why does this expansion sometimes get them in serious trouble?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91520178

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