Explain additional ads show the same response is the bank, Ask an Expert

Economics

Alliance Bank can advertise its CDs in newspaper or magazine ads. Based on recent response data, the newspaper ads generate 2,000 inquiries and cost $400, while the magazine adds generate 1,000 inquiries and cost $100. They currently run one of each type of ad.

Assuming additional ads show the same response, is the bank running an optimal mix of ads. Explain.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M9283693

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