Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ex3. In business and economics, the point of diminishing returns occurs when there is a decrease in the marginal output of a production. Marginal output

image text in transcribed
Ex3. In business and economics, the point of diminishing returns occurs when there is a decrease in the marginal output of a production. Marginal output of a production is the first derivative, so point of diminishing returns is the change in the first derivative, thus it is the inflection point. Assume a company estimates that it will sale N(x) units of a product after spending $x thousands on advertising. N(x) = -0.25x4 + 23x3 - 540x2 + 80, 000 where 24

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Macroeconomics Principles Applications And Tools

Authors: Arthur O Sullivan, Steven M. Sheffrin, Stephen J. Perez

7th Edition

978-0134089034, 9780134062754, 134089030, 134062752, 978-0132555234

More Books

Students also viewed these Economics questions

Question

Describe the components of identity.

Answered: 1 week ago

Question

What appraisal intervals are often used in appraisal reviews?

Answered: 1 week ago

Question

What are the various alternatives?

Answered: 1 week ago