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... Johnny's Shop-and-Pay is a regional grocery chain, and their marketing manager is trying to determine the profit-maximizing coupon program for the store's laundry detergent brand. Coupon users at the store have an elasticity of demand for this product that equals -3, and the elasticity of demand for non-users of the coupon for the store brand equals -1.2. If the full retail (undiscounted) price of the detergent is $10 per box, what is the optimal discount to provide for coupon users? A. 25% off B. 75% off FA C. The optimal strategy is to charge the same price to both groups. D. 50% off You interview with an athletic footwear manufacturer that has annual advertising expenditures of $32 million and total sales revenue of $100 million, and the firm selects the profit maximizing level of advertising expenditures. If the advertising elasticity of demand is 0.4, then you know that "Rule of Thumb for Advertising" implies that the demand for the firm's products is: A. -2 B. -1.2 C. -1 D. -1.6 Suppose a market with a Cournot structure has five firms and a market price elasticity of demand equal to -2. What is a Cournot firm's Lerner Index? (Hint: a Cournot firm's Lerner Index = market share * monopolist's Lerner Index) A. 0.1 I R 1 Page 1 of 1 362 words, 1,986 characters Default Style English (USA) + 180% Type here to search e 2:23 PM 5/17/20 acer