The Total Annual Revenue R of the Miramar Resorts Hotel

question 12

Multiple Choice

The total annual revenue R of the Miramar Resorts Hotel is related to the amount of money x the hotel spends on advertising its services by the function ​ where both R and x are measured in thousands of dollars.
​Use this function to:
​1) Find the interval where the graph of R is concave upward and the interval where the graph of R is concave downward.
2) Find the inflection point of R.
3) Determine if it would it be more beneficial for the hotel to increase its advertising budget slightly when the budget is $240,000 or when it is $260,000.

• A) concave downward on ; concave upward on ; inflection point is
• B) concave upward on ; concave downward on ; inflection point is
• C) concave upward on ; concave downward on ; inflection point is
• D) concave downward on ; concave upward on ; inflection point is
• E) concave upward on ; concave downward on ; inflection point is

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Definitions:

Economic Downturn

A period of reduced economic activity characterized by declines in spending and investment, often leading to recession.

Diversification

A risk management strategy that mixes a wide variety of investments within a portfolio to reduce exposure to any single asset or risk.

Diversifiable Risk

A type of risk that can be reduced or eliminated from a portfolio through investments in a variety of assets, also known as unsystematic risk.

Arbitrage Pricing Model

A theory for asset pricing that takes into account multiple risk factors and the return of an asset, assuming no arbitrage opportunities.