A firm has a demand equation q200-5p and is currently, Ask an Expert

Economics

A firm has a demand equation Q=200-5P and is currently charging $2 for its product. The firm is currently maximizing profits, and its advertising elasticity of demand is .005

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

b. Determine the profit-maximing dollar amount of advertising

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91845214

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