Perfect Shots is company specializing in wedding photos and they have a fixed advertising budget. Perfect Shots advertises on the radio and the television and it costs $5,000 per unit of radio advertising and $15,000 per unit of television advertising. At their current advertising levels, the marginal benefit from radio advertising is $4,800 and the marginal benefit from television advertising is
$15,250. To optimally allocate their advertising budget, Perfect Shots should ________.
A) decrease the amount of advertising in radio and increase the amount of advertising in television
B) decrease the amount of advertising in radio and television
C) increase the amount of advertising in radio and television
D) increase the amount of advertising in radio and decrease the amount of advertising in television
A) decrease the amount of advertising in radio and increase the amount of advertising in television
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