What is optimal quantity and optimal level of advertising

Reference no: EM133660934

Problem: Suppose now that the Happy Burgers food truck got destroyed because of torrential rain and is out of the campus market. In addition, Super Burgers has also decided to invest in advertising. Its MC of producing burgers is still $2. The market demand for burgers is now represented as Q=19-0.5p 0.5A2 , where Q represents quantity demanded of burgers, p is the per unit price and A is the total dollar advertising expenditure. If Super Burgers wants to maximize profits, what is the optimal quantity and optimal level of advertising? What is the impact of advertising in the demand for burgers? Illustrate this impact graphically.

Reference no: EM133660934

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