Explain additional ads show the same response

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Reference no: EM1363378

Alliance Bank can advertise its CDs in newspaper or magazine ads. Based on recent response data, the newspaper ads generate 2,000 inquiries and cost $400, while the magazine adds generate 1,000 inquiries and cost $100. They currently run one of each type of ad.

Assuming additional ads show the same response, is the bank running an optimal mix of ads. Explain.

Reference no: EM1363378

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