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Suppose that you are currently selling a branded food product, which has a demand elasticity of -4. Assume the unit (marginal) cost is $3. Also
Suppose that you are currently selling a branded food product, which has a demand elasticity of -4. Assume the unit (marginal) cost is $3. Also assume that you sell 1000 units a day at the profit maximizing price. Also assume that you are a monopolistic competitor operating in the short-run. Suppose that you launch an advertising campaign that ultimately doesn't impact your sales, but does drop elasticity to -3.70. Enter the upper limit for advertising cost that would keep advertising from being unprofitable
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