The profit P (in hundreds of dollars) that a company makes depends on the amount x (in hundreds of dollars) the company spends on advertising according to the model. P(x) = 230 + 40x - 0.5x2 What expenditure for advertising will yield a maximum profit? A) 40 B) 0.5 C) 230 D) 20

2 months ago

Solution 1

Guest #1627032
2 months ago

Option A

Step-by-step explanation:

Given that The profit P (in hundreds of dollars) that a company makes depends on the amount x (in hundreds of dollars) the company spends on advertising according to the model.

We can use derivative test to find maximum

Differentiate two times the profit funciton

Equate I derivative to 0

we get

II derivative is alrways negative

Hence profit is maximum when x=40

Option A is right

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