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Production: point of diminishing returns:-
A T-shirt manufacturer is planning to expand its workforce. It estimates that the number of T-shirts produced by hiring x new workers is given by
T(x)=-0.25x4 + 5x3 0<=x<=15
When is the rate of change of T-shirt production increasing and when is it decreasing? What is the point of diminishing returns and the maximum rate of change of T-shirt production? Graph T and on the same coordinate system.
What would the nature of this industry suggest about the elasticity of demand affecting Bowlin's pricing?- What types of costs should Bowlin evaluate when he is determining his break-even point?
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