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Maximum Sales Growth This is a continuation of Exercise 10. In this exercise, we determine how the sales level that gives the maximum growth rate is related to the limit on sales. Assume, as above, that the constant of proportionality is 0.3, but now suppose that sales grow to a level of 4 thousand dollars in the limit.
a. Write an equation that shows the proportionality relation for G.
b. On the basis of the equation from part a, make a graph of G as a function of s.
c. At what sales level is the growth rate as large as possible?
d. Replace the limit of 4 thousand dollars with another number, and find at what sales level the growth rate is as large as possible. What is the relationship between the limit and the sales level that gives the largest growth rate? Does this relationship change if the proportionality constant is changed?
e. Use your answers in part d to explain how to determine the limit if we are given sales data showing the sales up to a point where the growth rate begins to decrease.
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