In promotional management (Marketing)

Refer to the image, when answering the questions.

1. How should promotional budgeters react to the finding that the curve flattens in the upper right-hand part of the figure? In other words, what budget recommendation should be made? Explain.
2. If the amount of competition in the marketplace for this company's types of products increases, what most likely happen would happen to the threshold point shown in the image (i.e., would it move closer to 0, be at point A, be at point B, or what)? Why? Explain briefly.

FIGURE 1 Sales ($) Z Note: Assume points A, B, C, D, X, Y, and Z Y are all actual dollar amounts. x o A B c D Ad Budget ($)