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August 28, 2014

August 28, 2014

Posted by **May Ann Pascual Aragon** on Friday, March 22, 2013 at 10:11am.

- Math -
**Steve**, Friday, March 22, 2013 at 10:43amIf p is spent on production, and a on advertising, and the total budget is n,

P = kp√a

p+a <= n, so p = n-a

P = k(n-a)^2 √a

dP/da = -2k(n-a)√a + k(n-a)^2/(2√a)

= k(n-a)(n-5a)/(2√a)

So, maximum profit occurs when 1/5 of the budget is allocated to advertising

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