Question

Meaning of horizontal asymptote in the graph of increasing profit of a company

Answer 1

A horizontal asymptote can be defined as the y-value on a graph which a function approaches but does not actually reach. Here is a simple graphical example where the graphed function approaches, but never quite reaches. In fact, no matter how much it is extended, it will never ever reach 0. However, sometimes horizontal asymptotes may only appear in one direction, and may be crossed at small values of x. They will show up for large values and show the trend of a function as x goes towards positive or negative infinity.