Determine the firm''s optimal advertising-to-sales ratio, Business Economics

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Determine the firm''s optimal advertising-to-sales ratio

Optimal advertising-to-sales ratio

The elasticity of demand for a firm's products are -2 and its advertising elasticity of demand is 0.1

a. Determine the firm's optimal advertising-to-sales ratio?

b. If the firm revenues are $50,000.00, what is its profit-maximizing level of advertising?

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Business Economics: Determine the firm''s optimal advertising-to-sales ratio

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Business Economics: Determine the firm''s optimal advertising-to-sales ratio

Reference No:- TGS026085

Have a Question? (oR Write a Review)

Recent Questions Asked Business Economics

Q : Do you recommend further price increases

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Q : What is the price elasticity of demand of a representative

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Request for Solution File

Ask an Expert for Answer!!

Business Economics: Determine the firm''s optimal advertising-to-sales ratio

Reference No:- TGS026085

Recent Questions Asked Business Economics

Q : Do you recommend further price increases

Q : Factors affecting reasoning performance

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Q : What is the price elasticity of demand of a representative

Q : Determine the firm''s optimal advertising-to-sales ratio

Q : Determine methods for analyzing financial ratios

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Q : What factors do you think will affect

Q : Compute cost of retained earnings

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