​The Profit P (In Thousands of Dollars)for a Company Spending

question 182

Multiple Choice

​The profit P (in thousands of dollars) for a company spending an amount s (in thousands of dollars) on advertising is The point of diminishing returns is the point at which the rate of growth of the profit function begins to decline.Find the point of diminishing returns.Round your answer to the nearest thousand dollars. ​

• A) ​43 thousand dollars
• B) ​130 thousand dollars
• C) ​104 thousand dollars
• D) ​173 thousand dollars
• E) ​87 thousand dollars

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Definitions:

Rates of Return

Rates of return measure the net gain or loss of an investment over a specified period, expressed as a percentage of the investment’s initial cost.

Standard Deviations

A measure of variability that quantifies the extent of deviations of a set of data points from their mean.

N Risky Securities

A term referring to a collection of investments that carry a significant level of risk, where 'N' indicates the number or variety of such risky assets.

Risk Level

The potential for losing something of value, measured in the context of investment as the uncertainty regarding the return or the possibility of losing some or all of the original investment.