17. A young college student on a tight budget is campaigning for an open city council seat....
Question:
17. A young college student on a tight budget is campaigning for an open city council seat. A friend in her economics class estimates that voters are influenced by TV and newspaper ads according to the following function: Votes =
300T V 0.6 N P 0.2 , where TV represents the number of television ads and NP represents the number of newspaper ads. Thus, the marginal product of a newspaper ad is 60T V 0.6 N P – 0.8 and the marginal product of a TV ad is 180T V – 0.4 N P 0.2 . A local television ad costs
$400, and a local newspaper ad costs $250. If the candidate needs 1,800 votes to win, what is the lowest-cost combination of newspaper and TV ads that will bring her victory?
Step by Step Answer:
Microeconomics
ISBN: 9780716759751
1st Edition
Authors: Austan Goolsbee, Steven Levitt, Chad Syverson