Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Microeconomics Expert

5. The advertising manager at Cadillac wishes to run both television and magazine ads to promote the new Cadillac GTS in the greater Chicago area market. Each 30-second television ad will reach 30,000 viewers in the target age group of buyers 35 to 55 years old. Running one full page ad in Cool Driver magazine will reach 10,000 readers in the 35 to 55 year-old target market. To further promote the new GTS, the manager wishes to stimulate prospective buyers to come in to Chicago area dealerships to test drive the GTS. Past experience in Chicago indicates that a television ad will generate 500 test dri- ves, while a magazine ad will generate only 250 test drives. In order to reach the desired level of new-model penetration in the Chicago area, the advertising manager believes it is necessary to reach at least 90,000 potential buyers in the 35 to 55 age bracket and to get at least 2,000 of these potential buyers to take a test drive. Each 30- second TV ad costs $100,000 and each magazine ad costs $40,000. In reaching these objectives, the manager wishes to minimize the total expenditure on TV and magazine ads.

a. State the linear programming problem facing this advertising manager. Be sure to formulate the objective function and inequality constraints (including appropriate nonnegativity constraints).

b. Solve the linear programming problem. What is the optimal number of TV ads and magazine ads? What will be the minimum possible level of total expenditures on television and magazine ads necessary to successfully promote the GTS in Chicago?

c. Suppose the local television stations, in order to reduce set-up costs, require Cadillac to run its ad two or more times. How would this constraint alter the solution to this linear programming problem?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M946965

Have any Question? 


Related Questions in Microeconomics

Assignmentselect and review an inspection report posted on

Assignment Select and review an inspection report posted on the OSHA website. The inspection reports can be searched by industry group or establishment name by accessing the reports through the OSHA's Statistics & Data P ...

Assignment multiyear plans and Assignment: Multiyear Plans and Analysis Preparation •

Assignment: Multiyear Plans and Analysis Preparation • Review the document titled "City of Charlottesville 2010 Annual Comprehensive Plan" located in the course shell. Write a three to four (3-4) page paper in which you: ...

Assignmentthe paper is to be a properly formatted apa paper

Assignment The paper is to be a properly formatted (APA) paper that I expect will take at least 5 pages to do properly. It is to take the material discussed in the course and apply it to some issue or observation in your ...

Assignmentpart idirections read the prompts below and

Assignment PART I Directions: Read the prompts below and formulate a response of at least one half of one page in length for each question. Please show Your references on a reference page 1. Explain records checks. List ...

Assignmentin this assignment you must break a norm this

Assignment In this assignment, you must break a norm. This breach must be done in a public forum. You will be writing an essay about your experiment, in which you must be sure to answer all of the questions listed in thi ...

Leasing equipmentfor catherine owens onlybullsuggest one

Leasing Equipment For Catherine Owens Only • Suggest one key economic factor that motivates leasing as an option in acquiring an asset. Explain the potential asymmetries that may exist where leasing may be beneficial to ...

Assignmentanalyze the significant rules concerning the

Assignment Analyze the significant rules concerning the manner in which corporations treat the dividends that they are paying. Based on your analysis, recommend at least two changes that you would make to the rules that ...

Assignmenta computerworld investigation reported that

Assignment A Computerworld investigation reported that delays in overhauling the federal tax system have cost the U.S. government approximately $50 billion a year in uncollected taxes. Although the IRS has spent hundreds ...

Economics problemsconsumer demand analysis and estimation

Economics Problems Consumer Demand Analysis and Estimation Applied Problems Please complete the following two applied problems: Problem 1: Patricia is researching venues for a restaurant business. She is evaluating three ...

Problem -the table below gives the income of each of four

Problem - The Table below gives the income of each of four individuals who are in a region. Calculate and plot the Lorenz curve and calculate the Gini coefficient for this economy. individual income 1 100 2 200 3 300 4 4 ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro