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

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

step-by-step explanation:

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