Show & Sell can advertise its products on local radio and television (TV), or in newspapers. The

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Show & Sell can advertise its products on local radio and television (TV), or in newspapers.

The advertising budget is limited to $10,000 a month. Each minute of advertising on radio costs $15 and each minute on TV costs $300. A newspaper ad costs $50. Show &

Sell likes to advertise on radio at least twice as much as on TV. In the meantime, the use of at least 5 newspaper ads and no more than 400 minutes of radio advertising a month is recommended. Past experience shows that advertising on TV is 50 times more effective than on radio and 10 times more effective than in newspapers.

(a) Determine the optimum allocation of the budget to the three media.

(b) Are the limits set on radio and newspaper advertising justifiable economically?

(c) If the monthly budget is increased by 50%, would this result in a proportionate increase in the overall effectiveness of advertising?

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