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Anna Anna is offline
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Default Help me to understand formulae

Hi,
Searching for the solver examples on the net I came across the example where
I find a formulae that I dont understand and I just wonder if any one could
explain in very simple words the formulae is

=B14*MAX (B10, 0) ^$H$4

where b14 =Unit Profit
b10 =Units Produced
$H$4= Diminishing Profit Factor (0.9)

I can see that when I remove the Diminishing Profit Factor the result is
much higher but I dont understand why it has been included on the first place
Thanks in advance
Anna