Explanation
Core Concept
The primary reason the statement is true is that the company's profit function is modeled by a function that approaches a vertical asymptote, which indicates that the function is discontinuous at that point. This is a characteristic of rational functions with vertical asymptotes, not rational functions with holes. (B) is incorrect because the function is discontinuous at the point of the vertical asymptote. (C) is incorrect because a horizontal asymptote represents a limit as x approaches ∞, not as x approaches a point of discontinuity. (D) is incorrect because the function can reach its maximum value at the point of the vertical asymptote.
Correct Answer
BA) The function is discontinuous at the point of the vertical asymptote.
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