Math Problem Statement
Solution
To find the point of diminishing returns for the given revenue function:
we need to locate the inflection point of this function, as the hint suggests. Inflection points occur where the second derivative changes sign, indicating a change in the concavity of the graph, which can signify the point where revenue growth starts to slow down (diminishing returns).
Step-by-Step Solution
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First Derivative : Find the first derivative to understand the rate of change of revenue with respect to (advertising).
Using the chain rule: Simplifying:
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Math Problem Analysis
Mathematical Concepts
Calculus
Inflection Point
Diminishing Returns
Formulas
First Derivative: R'(x) to find the rate of change of revenue
Second Derivative: R''(x) to find inflection points
Theorems
Inflection Point Theorem
Suitable Grade Level
Grades 11-12
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