In 2009 abc company made 2m of net profit and spent 100000, Ask an Expert

Economics

In 2009, ABC Company made $2M of net profit and spent $100,000 on advertisement. In 2010, it made $2.5M of net profit and spent $150,000 of advertisement. Based on this information, if ABC's advertisement expenditure increases by $20,000 in 2011, how much do you expect its net profit to increase? Explain why the ratios of net profit to advertisement expenditure in 2009 and 2010 are different from the slope of the net profit advertisement relationship.

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Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M9604632

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