Describe the firms optimal advertising-to-sales ratio

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Optimal advertising-to-sales ratio

The elasticity of demand for a firm's products are -2 and its advertising elasticity of demand is 0.1

a. Determine the firm's optimal advertising-to-sales ratio?

b. If the firm revenues are $50,000.00, what is its profit-maximizing level of advertising?

 

Reference no: EM1329026

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