Business I / Differential Equations
Practice question · Multiple choice

Exponential growth and logistic growth agree closely at first and diverge completely later. What in the equation causes the split?

Hints
  1. Look at the logistic equation's extra factor. What is its value when the population is tiny?
  2. Ask what happens to that factor as the population approaches K.
Show the answer

C. The logistic growth rate falls near a carrying capacity

Why

The (1 − N/K) factor is nearly 1 when N is small and heads to zero near the ceiling, so the two models are indistinguishable exactly when a startup is fitting its curve. That is why early growth is such weak evidence about which regime you are in.

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