The price elasticity of demand for nursery products is -10. The advertising elasticity of demand is 0.4. Using the "Rule of Thumb for Advertising," the profit maximizing level of advertising will be set at ________ of sales
A) 0.25 percent
B) 0.4 percent
C) 4 percent
D) 40 percent
C
You might also like to view...
The unilateral transfers category in the current account refers to
a. money sent from one country to another without anything being exchanged in return b. money sent from one country to another with goods being exchanged in return c. goods sent from one country to another without anything being exchanged in return d. goods sent from one country to another with money being exchanged in return e. services sent from one country to another without anything being exchanged in return
Customers who purchase an audio CD from Sally's Sounds are charged 20% more than customers who purchase the audio CD from the Sally's Sounds website. This is an example of
a. perfect price discrimination. b. price discrimination. c. deadweight loss. d. socially inefficient output.
According to the theory of liquidity preference, an increase in the price level causes the
a. interest rate and investment to rise. b. interest rate and investment to fall. c. interest rate to rise and investment to fall. d. interest rate to fall and investment to rise.
What is the national security argument for restricting international trade? What is its flaw?
What will be an ideal response?