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.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Explanation it correctly
![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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F21fb268e-8d6a-4d4f-9225-45c382f75440%2F71644601-33d6-43c2-8fe2-8f53f790b340%2F1qs6wwf_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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.
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