Suppose that you are hired as business consultant for a company, and after collecting data you estimated the following profit function: profit = -18.8 + 8P - 0.3P2 + 7A - 0.3A2 where P is the price of the product the company sells, and A is advertising spending. Find the advertising level which maximizes the firm's profit. Round your answer to the nearest 0.01.

Suppose that you are hired as business consultant for a company, and after collecting data you estimated the following profit function: profit = -18.8 + 8P - 0.3P2 + 7A - 0.3A2 where P is the price of the product the company sells, and A is advertising spending. Find the advertising level which maximizes the firm's profit. Round your answer to the nearest 0.01.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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(b) You are the CEO for a lightweight compasses manufacturer. The demand function for the lightweight compasses is given by p 40 – 4q²where q is the number of lightweight compasses produced in millions. It costs the company $15 to make a lightweight compass. (1) Write an equation giving profit as a function of the number of lightweight compasses produced. (11) At the moment the company produces 2 million lightweight compasses and makes a pre of $18,000,000, but you would like to reduce production. What smaller number of lightweight compasses could the company produce to yield the same profit? Σ BIUG G |卡三 = 9 ..
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You are the CEO for a lightweight compasses manufacturer. The demandfunction for the lightweight compasses is given by p = 40 − 4q2where q is the number of lightweight compasses produced in millions.It costs the company $15 to make a lightweight compass.(i) Write an equation giving profit as a function of the number of lightweight compasses produced.
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Give with diagram mandatory
Note. Don't use any aibot, will be given downvoted.
Is the profit posted in the advert true? Justify through computation.
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fully label graphs, please