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A company is trying to determine how to allocate its $ 7 8 , 1 0 0 advertising budget for a new product. The company
A company is trying to determine how to allocate its $ advertising budget for a new product. The company is considering newspaper ads and television commercials as its primary means for
advertising. The following table summarizes the costs of advertising in these different media and the number of new customers reached by increasing amounts of advertising.
For instance, each of the first ads the company places in newspapers will cost $ and is expected to reach new customers. Each of the next newspaper ads will cost $ and is
expected to reach new customers. Note that the number of new customers reached by increasing amounts of advertising decreases as the advertising saturates the market. Assume the company
will purchase no more than newspaper ads and no more than television ads. Let be the number of newspaper ads purchased at $ each. Let be the number of newspaper ads
purchased at $ each. Let be the number of newspaper ads purchased at $ each. Let be the number of television ads purchased at $ each. Let be the number of television ads
purchased at $ each. Let be the number of television ads purchased at $ each.
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