The elasticity of demand for a firm's product is -2.5 and its advertising elasticity of demand is 0.2. a. Determine the firm's optimal advertising- to-sales ratio. Round your response to 2 decimal...


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The elasticity of demand for a firm's<br>product is -2.5 and its advertising elasticity<br>of demand is 0.2.<br>a. Determine the firm's optimal advertising-<br>to-sales ratio. Round your response to 2<br>decimal places.<br>b. If the firm's revenues are $40,000, vwhat<br>is its profit-maximizing level of advertising?<br>

Extracted text: The elasticity of demand for a firm's product is -2.5 and its advertising elasticity of demand is 0.2. a. Determine the firm's optimal advertising- to-sales ratio. Round your response to 2 decimal places. b. If the firm's revenues are $40,000, vwhat is its profit-maximizing level of advertising?

Jun 09, 2022
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