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An Atlanta marketing agency figures that the monthly cost of a billboard advertising campaign depends on the fraction of the market p that the client wishes to reach. For 0 is less than or equal to p is less than 1 the cost in dollars is determined by the formula

C = (4p - 1200)/(p - 1)

What is the monthly cost for the campaign intended to reach 95% of the market? Graph this function for 0 less than or equal to p is less than 1. What happens to the cost for a client who wants to reach 100% of the market?

2007-03-11 17:51:07 · 1 answers · asked by sillyboys_trucksare4girls 2 in Science & Mathematics Mathematics

1 answers

If p= .95, we have 3.8 - 1200 / (.95-1) appx 24000. Your cost function looks suspect, since it is nearly 1200/(1-p) for p#1. At very low p, C approaches 1200, and for very high p, the function "takes off" since 1-p approaches 0. Thus a 100% reach would take an indetermible (and huge) investment.

2007-03-11 18:03:53 · answer #1 · answered by cattbarf 7 · 0 0

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