The Profit P (In Hundreds of Dollars) That a Company $P = 230 + 30 x - 0.5 x ^ { 2 }$

question 117

Multiple Choice

The profit P (in hundreds of dollars) that a company makes depends on the amount x (in hundreds of dollars) the company spends on advertising according to the model $P = 230 + 30 x - 0.5 x ^ { 2 }$
What expenditure for advertising will yield a maximum profit?

• A)30
• B)0.5
• C)230
• D)15
• E)115

---

Definitions:

Trade Surplus

A situation where a country exports more goods and services than it imports, leading to a positive balance of trade.

Exporting

Producing goods in one country and selling them in another.

Joint Venture

Formed when a firm entering a new market pools its resources with those of a local firm to form a new company in which ownership, control, and profits are shared.

Purchasing Power Parity

An economic theory that compares different countries' currencies through a "basket of goods" approach to assess their purchasing power equivalency.