Refer to the table below. If at the current advertising level, A = $9,800, B = $15,200, and C = $8,000, to maximize profit, which of the following should the firm do?
The table above shows the current costs for a firm to advertising on the radio, television, and newspaper.
A) The firm should decrease its advertising on the radio and increase its advertising in newspapers.
B) The firm should decrease its advertising on the television and increase its advertising in newspapers.
C) The firm should increase its advertising on the television and decrease its advertising in newspapers.
D) The firm should decrease its advertising on the radio and increase its advertising on television.
D) The firm should decrease its advertising on the radio and increase its advertising on television.
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Yoyo's Frozen Yogurt, Inc is thinking of building a new warehouse. They believe that this will give them $50,000 of additional revenue at the end of one year, $60,000 additional revenue at the end of two years, and $70,000 in additional revenue at the end of three years. If the interest rate is 5 percent, Yoyo would be willing to pay
a. $140,000, but not $150,000. b. $150,000, but not $160,000. c. $160,000, but not $170,000. d. $170,000, but not $180,000.
When the federal government cuts taxes and increases purchases to stimulate the economy during a period of recession, such actions are designed to be
A. expansionary. B. passive. C. contractionary. D. automatic.
The essential cause of the tragedy of the commons is the fact that:
A. when a resource has no price, it leads to a positional externality. B. governments may not tax activities that generate negative externalities. C. it can be difficult to solve the free-rider problem. D. one person's use of a commonly held resource imposes an external cost on others.
If GDP exceeds GNP, we know with certainty that
A) a budget deficit exists. B) a trade surplus exists. C) a trade deficit exists. D) receipts of factor income from the rest of the world exceed payments of factor income to the rest of the world.