Refer to the table below. If at the current advertising level, A = $10,000, B = $15,000, 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 has optimally allocated their advertising budget, but that does not guarantee that they have maximized their profits.

C) The firm should decrease its advertising on the radio and increase its advertising on television.

D) The firm has optimally allocated their advertising budget, which guarantees they have maximized their profits.


B) The firm has optimally allocated their advertising budget, but that does not guarantee that they have maximized their profits.

Economics

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