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Unformatted text preview: dollars each month. The graph of R is given below. We shall follow the steps below to investigate the e±ect of the amount of advertising x on the revenue R . (a) Evaluate dR dx when x = 10. (b) What does the answer in (a) tell us about the advertising dollars on revenue when x = 10. (c) Complete the following table for dR dx at diFerent values of x . x 2 3 4 5 6 7 8 9 10 11 12 13 dR dx 10.8 13.3 16.5 17.2 17.3 15.7 14.0 11.7 8.8 5.3 (d) What does the table tell us? (e) Use calculus to ±nd the point of diminishing returns. Note. Investments beyond the point of diminishing returns is usually considered not a good way to allocate limited resources. Thus, the company in our example would want to consider spending about 6.67 thousand dollars, boosting revenue from 60 thousand dollars (when x = 0) to about 146 thousand dollars....
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This note was uploaded on 01/02/2012 for the course MAC 2233 taught by Professor Danielyan during the Fall '08 term at University of South Florida.
- Fall '08