The elacity of demand for a firmrsquos product is - 2 and


The elacity of demand for a firm’s product is - 2 and its advertising elasticity of demand is 0.1.

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 advertising?

Request for Solution File

Ask an Expert for Answer!!
Business Economics: The elacity of demand for a firmrsquos product is - 2 and
Reference No:- TGS01299734

Expected delivery within 24 Hours