Firm optimal advertising-to-sales ratio

Assignment Help Business Economics
Reference no: EM131449642

The elasticity of demand for a firm's product is -4 and its advertising elasticity of demand is 0.2.

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

Instruction: Round your response to 2 decimal places.________

b. If the firm's revenues are $50,000, what is its profit-maximizing level of advertising? $_________

Reference no: EM131449642

Questions Cloud

Formula that mentions when gdp rises : How much will GDP rise when Kim K buys her purse according to the multiplier effect? I am having trouble finding a formula that mentions when GDP rises.
What kinds of local and federal responses can you expect : What kinds of local, state, and federal responses can you expect? How and why would each agency be involved?
Discuss the management functions : Maggie Wiltz manages a high-fashion specialty store in Atlanta, Georgia. Her daily activities start one hour before her store normally opens for business.
Price elasticity of demand for the drug : An economist has estimated that, at the current price of $1.50 per pill, the own price elasticity of demand for the drug is -1.5.
Firm optimal advertising-to-sales ratio : The elasticity of demand for a firm's product is -4 and its advertising elasticity of demand is 0.2.
What is the risk of change : The use of knowledge in society - to what degree is the organisation able to leverage of this for competitive advantage.
Watch the movie - iron man : Review this list of movies or this list of historical case studies that are approved for use for this assignment. You must choose from the provided lists.
Should the greek government buy back the sculptures : First, either paint a picture with words or insert a picture of your sculpture into your writing. Second explain some of its qualities and elements.
Analyze the advantages and disadvantages of each system : analyze the advantages and disadvantages of each system. Outline recommendations and suggestions for further improvement.

Reviews

Write a Review

Business Economics Questions & Answers

  What do you mean by macroeconomics and its role

What do you mean by macroeconomics. What role does macroeconomics play in your personal financial decisions and the decisions that your organization makes.

  Find the us international trade policies

Does NAFTA affect the automobile industry's decisions on what to do with labor and capital costs? If so, how? In your opinion, was this trade agreement good for the United States and Mexico from an economic standpoint?

  Recall the looser pay winner auction experiment

Recall the looser pay winner auction experiment done in class. discuss how these experiments explain why the bidders changed their minds toward wanting to bid well above the value of the prize, even though they refused to do so at the beginning.

  The supply of space

The supply of space is

  Principles for the code of professional conduct

One of the principles for the code of professional conduct for agents, states:

  Imposition of a binding price ceiling on a market

Which of the following observations would be consistent with the imposition of a binding price ceiling on a market? After the price ceiling becomes effective.

  Assume a perfectly competitive firm is currently producing

Assume a perfectly competitive firm is currently producing 5,000 units of output and is earning $15,000 in total revenue. The marginal cost of the 5,000th unit of output is $3. The corresponding average total cost is $3.50 and total fixed costs equal..

  Q1 explain the role culture may play in influencing

q1. explain the role culture may play in influencing entrepreneurship both at the individual and social level. define

  What would be a benefit of lower taxes

a) Which group is right? Explain. b) What would be a benefit of lower taxes?

  Compensation and government regulations

"Compensation and Government Regulations" Please respond to the following: Compare job-based pay with skill-based pay and provide an example of each. Determine which pay you would prefer. Support your decision. Determine how government regulations af..

  What would the nash equilibrium be in this game

Two street racers are playing a simultaneous game of chicken. They have to race towards each other and whoever swerves first is chicken and faces shame, a loss of 8, while the winner enjoys a gain of 3. If neither stop, they would crash into each oth..

  Estimated regression equation

Estimated regression equation for which quantifies the demand for Widget

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd