Question
QQ may advertise its products on local radio and television (TV), or in newspapers. The advertising budget is limited to $10,000 per month. Each minute
QQ may advertise its products on local radio and television (TV), or in newspapers. The advertising budget is limited to $10,000 per month. Each minute of radio advertising costs $15 and each minute on TV costs $ 300. A newspaper ad costs $ 50. QQ likes to advertise on the radio at least twice as many times as it does on TV. Meanwhile, it is recommended to use at least 5 newspaper ads and not more than 400 minutes of radio advertising per month. Past experience shows that TV advertising is 50 times more effective than radio advertising, and 10 times more effective than in newspapers.
a. Determine the optimal allocation of the budget to the three media.
b. Are the limits set on radio and newspaper advertising economically justifiable?
c. If the monthly budget is increased by 50%, would this result in a proportionate increase in the overall effectiveness of advertising?
Please show tableaus and the right LP model for this. No copy-pasted answers.
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