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You are a manager of a trade association. Your members have fixed your advertising budget and will not allow you to change it. You allocate
You are a manager of a trade association. Your members have fixed your advertising budget and will not allow you to change it. You allocate your advertising in two ways: television and magazines. The price of a local television advertisement (PTV) is $200, and the price of a magazine advertisement (PMAG) is $4,000. The marginal benefit from a television advertisement (MBTV) is $3,000, and the marginal benefit from a magazine advertisement (MBMAG) is $80,000. Are you optimally allocating your advertising budget? Explain your answer
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