ADVERTISING Advertising is a multi-billion-dollar industry. Using concepts, which you have learned in this course (Chapters 2, 3, 4 and so on), trace the reasons why you would consider advertising the goods/services that you sell. What are the physical and economic characteristics of goods/services sold which will benefit from advertising? Why? Suppose you are the Marketing Manager for Pepsi company. Let's assume that each year you sell 6 million cans of Diet Pepsi. Pepper at the price of $0.50. The long-run average gross cost of a serving is constant and is equal to $0.40 per can. Your supervisor calls you and assigns a project if it makes economic sense of running additional advertising during the Super Bowl game between the LA Rams and Cincinnati Bengals. You determine that running the 30-second advertisement will raise the price consumers are willing to pay for the initial 6 million servings by $0.001 (1/10 of a cent) per can. You also determine that the advertisement will allow you to sell 1 million more servings at a new price of $0.50 per serving. The price of a 30-second Super Bowl commercial is $500,000. Should you buy the advertisement? Why or Why not? Please offer a logical answer based on calculations and show all the work. 2, You determine that running the 60-second advertisement will raise the price consumers are willing to pay for the initial 6 million servings by $0.0015 per serving. You also determine that the advertisement will allow you to sell half a million more servings at a price of $0.55 per serving. The price of a 60-second Super Bowl commercial is $1 million. Should you buy the advertisement? Of these two options, which one will you recommend? Why or Why not in each case? Using economic analysis to explain your answers