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The number of households in a certain community is given by h(t) = 1:26t2 +7800 households t years after 2001. The proportion (expressed as a decimal) of the households in this same community that have DVD recorders is given by p(t) = 0:663/1+ 3781e1:875t t years after 2001.
(a) What does C(t) = h(t)p(t) represent?
(b) Find and interpret the following:
i. h(3) and h'(3)
ii. p(3) and p'(3)
iii. C(3) and C'(3)
Problems of profit based measures - Absolute profit measures ignore the amount of investment in the division e.g. does not look at profit relative to capital employed. -
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