Question

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

Answer 1

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