The elasticity of demand for a firms product is 2 and its advertising elasticity of demand is
Question:
a. Determine the firm’s optimal advertising-to-sales ratio.
b. If the firm’s revenues are $50,000, what is its profit-maximizing level of advertising?
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a The optimal a...View the full answer
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Related Book For 
Managerial Economics and Business Strategy
ISBN: 978-0071267441
7th Edition
Authors: Michael R. baye
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