Note: This problem requires Excel.
You have noticed that paying higher wages attracts more productive employees. However, you are concerned that there may be a limit to this relationship. Some experimentation has convinced you that the relationship between wages paid (x) and profits can be modelled by the equation Profit = 25x − 0.1x2 + 200. Use a Nonlinear Solver tool to determine the level of wages that will maximize profits.
A) 25
B) 50
C) 75
D) 100
E) 125

Question

Quizplus · Accepted Answer

The Answer of Note: This problem requires Excel.
You have noticed that paying higher wages attracts more productive employees. However, you are concerned that there may be a limit to this relationship. Some experimentation has convinced you that the relationship between wages paid (x) and profits can be modelled by the equation Profit = 25x − 0.1x2 + 200. Use a Nonlinear Solver tool to determine the level of wages that will maximize profits.
A) 25
B) 50
C) 75
D) 100
E) 125

Note: This Problem Requires Excel