(Answered) The elasticity of demand for a firms product is -2 and its

Economics

The elasticity of demand for a firm's product is -2 and its advertising elasticity of demand is 0.2.

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

Instruction: Enter your response rounded to two decimal places.

b. If the firm's revenues are $40,000, what is its profit-maximizing level of advertising

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Business Economics, Economics

Category:- Business Economics
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