Profit of a Company P 4000 3500 3000 2500 2000 1500 1000 500 + + + + 10 + 20 30 40 50 60 70 Advertising cost (in thousands of dollars) Profit (in thousands of dollars)

College Algebra
7th Edition
ISBN:9781305115545
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter5: Systems Of Equations And Inequalities
Section5.1: Systems Of Linear Equations In Two Variables
Problem 76E
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The graph shows the profit P (in thousands of dollars) of a company in terms of its advertising cost x (in thousands of dollars). (a) Estimate the interval on which the profit is increasing. (b) Estimate the interval on which the profit is decreasing. (c) Estimate the amount of money the company should spend on advertising in order to yield a maximum profit. (d) The point of diminishing returns is the point at which the rate of growth of the profit function begins to decline. Estimate the point of diminishing returns.

Profit of a Company
P
4000
3500
3000
2500
2000
1500
1000
500
+
+
+
+
10
+
20
30
40
50
60
70
Advertising cost (in thousands of dollars)
Profit (in thousands of dollars)
Transcribed Image Text:Profit of a Company P 4000 3500 3000 2500 2000 1500 1000 500 + + + + 10 + 20 30 40 50 60 70 Advertising cost (in thousands of dollars) Profit (in thousands of dollars)
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