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Determine the optimal profit margin over price

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Reference no: EM131686987

Clark Industries currently spends 5 percent of its sales on advertising. Suppose that the elasticity of advertising for Clark is 0.25. Determine the optimal profit margin over price (P - MC)/P.

Multiple Choice

  • 15 percent.
  • 20 percent.
  • 25 percent.
  • None of the answers is correct.

Reference no: EM131686987

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