Profit Maximization

• Apr 14th 2009, 02:18 PM
Pixie11711
Profit Maximization
The profit (P) (in thousands of dollars) for a company spending an amount s (in thousands of dollars on advertising is: P = -1/10s^3 + 6s^2 + 400.

Find:

A.) The amount of money the company should spend on advertising in order to obtain a maximum profit.

B.) The maximum Profit.

I am stuck on this problem and I have to have it submitted soon. Can anyone help me????!?!?!?
• Apr 14th 2009, 02:51 PM
skeeter
Quote:

Originally Posted by Pixie11711
The profit (P) (in thousands of dollars) for a company spending an amount s (in thousands of dollars on advertising is: P = -1/10s^3 + 6s^2 + 400.

Find:

A.) The amount of money the company should spend on advertising in order to obtain a maximum profit.

B.) The maximum Profit.

I am stuck on this problem and I have to have it submitted soon. Can anyone help me????!?!?!?

find the derivative of $P$ w/r to $s$ , then set $P'(s) = 0$ and solve for the critical values of $s$ ... finally, determine which (if any) of those critical values yields a maximum for $P(s)$ by using the first or second derivative test for extrema.