A company's revenue from car sales, C (in thousands of dollars), is a function of advetising expenditure, a, in thousands of dollars, so C=ƒ(a).
(a) What does the statement ƒ'(100)=2 mean in practical terms? How about ƒ'(100)=0.5?
(b) Suppose the company plans to spend about $100,000 on advertising. If ƒ'(100)=2, should the company spend more or less than $100,000 on advertising? What if ƒ'(100)=0.5?
Help, especially with (b)! Thank you!
2007-09-12
10:49:49
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