The Management of a Company Has Decided That the Level

question 39

Short Answer

The management of a company has decided that the level of investment should not exceed D dollars. Furthermore, management has decided that the rate of net investment (the rate of change of the total capital invested) should be proportional to the difference between D and the total capital invested (A). Formulate but do not solve the problem in terms of a differential equation.

---

Definitions:

Proportion

A part, share, or number considered in comparative relation to a whole.

Overhead

The ongoing business expenses not directly attributed to creating a product or service, such as rent, utilities, and administrative costs.

Lowest Terms

The equivalent ratio having the smallest possible integers for its terms.

Division

A mathematical operation where one quantity is divided by another, resulting in a quotient and sometimes a remainder.