You’ve been asked to find the selling price that allows for the best possible profit from a piece in a new men’s clothing line. If you know the cost of the piece, how could you find the optimal selling price?

Calculate multiple price-quantity relationships.

Determine the demand function and find P*.

Create a demand schedule.

Estimate the relationship between quantity and cost.

P* is the point on the demand function that allows the company to make the largest profit.