Question
Suppose the revenue a firm generates from advertising is given by R(a)= 500a^0.5, where a is the number of ads. The cost of advertising is
Suppose the revenue a firm generates from advertising is given by R(a)= 500a^0.5, where a is the number of ads. The cost of advertising is given by C(a)=10a. Let f(a)=R(a)-C(a) be the revenue from advertising net of cost. What quantity of advertising should the firm choose to maximize f(a)?
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Microeconomics
Authors: Robert Pindyck, Daniel Rubinfeld
8th edition
978-0132870436, 132870436, 013285712X, 978-0133371178, 133371174, 978-0132857123
