question archive The elasticity of demand for a firm's product is -2 and its advertising elasticity of demand is 0
The elasticity of demand for a firm's product is -2 and its advertising elasticity of demand is 0
Subject:EconomicsPrice:2.88 Bought3
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.
b. If the firm's revenues are $40,000, what is its profit-maximizing level of advertising.
