The elasticity of a demand for a firm product is -3 and its


The elasticity of a demand for a firm product is -3 and its advertising elasticity of demand is .18

a. Determine the firms optimal advertising to sales ration.

b. If the firm revenues are $60,000 what is the profit-maximizing level of advertising?

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Business Management: The elasticity of a demand for a firm product is -3 and its
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