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A firm that supplies fur coats has estimated that the price elasticity of demand for its coats is 2.5. The firm has determined that an

A firm that supplies fur coats has estimated that the price elasticity of demand for its coats is 2.5. The firm has determined that an additional $100,000 in advertising would generate $200,000 in additional revenues. What would you advise the firm to do with this initiative? Explain your decision.

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