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 $14,000 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
$14,250. To optimally allocate their advertising budget, Perfect Shots should ________.
A) decrease the amount of advertising in radio and television
B) increase the amount of advertising in radio and decrease the amount of advertising in television
C) decrease the amount of advertising in radio and increase the amount of advertising in television
D) increase the amount of advertising in radio and television
C) decrease the amount of advertising in radio and increase the amount of advertising in television
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Everything else equal, an increase in the demand for dollars in exchange for pesos:
A) will cause the dollars to appreciate against the pesos and will increase the quantity of dollars being traded in the foreign exchange market. B) will cause the dollars to appreciate against the pesos and will decrease the quantity of dollars being traded in the foreign exchange market. C) will cause the dollars to depreciate against the pesos and will increase the quantity of dollars being traded in the foreign exchange market. D) will cause the dollars to depreciate against the pesos and will decrease the quantity of dollars being traded in the foreign exchange market.
Production efficiency occurs
A) anywhere inside or on the production possibilities frontier. B) when the total cost of production is minimized. C) at all points on the production possibilities frontier. D) at only one point on the production possibilities frontier. E) at all points inside the production possibilities frontier.
To signal to your insurance company that you are a low risk individual you should
a. Accept an insurance policy with no co-payments b. Accept an insurance policy with co-payments c. Accept an insurance policy with a low deductible d. None of the above
GDP is a measure of:
a. domestic production. b. changes in the general level of prices. c. material well-being. d. social welfare.