What is its average total cost of a jacket with advertising

Reference no: EM131297811

Suppose that Tommy Hilfiger's marginal cost of a jacket is a constant $100 and at one of the firm's shops, total fixed cost is $2,000 a day. The profit-maximizing number of jackets sold in this shop is 20 a day. When the shops nearby start to advertise their jackets, this Tommy Hilfiger shop spends $2,000 a day advertising its jackets, and its profit-maximizing output jumps to 50 jackets a day.

What is this shop's average total cost of a jacket sold before it starts to advertise? What is its average total cost of a jacket with advertising?

Reference no: EM131297811

Questions Cloud

Can you say what happens to tommy''s markup : When the shops nearby start to advertise their jackets, this Tommy Hilfiger shop spends $2,000 a day advertising its jackets, and its profit-maximizing output jumps to 50 jackets a day.

Describe a reasonable target population for the sample : Describe a reasonable target population for the sample you used. Identify the sample - Do you feel that your sample is representative of this population?

To what extent did you experience the three types of connect : Consider your current job or one you used to hold. To what extent did you experience the three types of connections that foster "embeddedness" described in the report: links, fit, and sacrifice?

Key factors that affect consumer preferences : Discuss the key factors that affect consumer preferences and therefore affect the size of the target market?- Are most large corporations going in this direction today?

What is its average total cost of a jacket with advertising : What is this shop's average total cost of a jacket sold before it starts to advertise? What is its average total cost of a jacket with advertising?

How much of lorinda loss suki and steve will able to deduct : Determine how much of the Lorinda loss Suki and Steve will each be able to deduct on their current tax returns, and list their losses suspended by the tax basis, at-risk, and passive activity loss limitations.

Examine the concept of product life cycle analysis : Examine the concept of product life cycle analysis. Provide one example of the way in which this analysis can help an organization to determine whether to continue offering a specific service to the community it serves.

How can a firm use e marketing to expand target market : What is e-marketing?- How can a firm use e-marketing to expand the target market? Define marketing research.

Criticize evidence-based practice : Some practitioners criticize evidence-based practice as "cookbook care." Considering these perceptions, how would you utilize your education and experiences in planning the implementation of a major change?

User Account

All Pages