Explain the economic principle, Microeconomics

Assignment Help:

Various studies have concluded that the demand for movie cinema attendance is responsive to advertising.  A study of one company, with movie cinemas in three neighbouring towns, shows that the quantity demanded each month in each town was related to the advertising budget in that town in the manner shown in the table below.  A movie ticket costs the same amount, 7.50, in each of the three towns.

2344_total demand.png

The company is considering an advertising budget of $7,500 per month.  What advertising mixes should the company adopt in order to generate the largest increase in its revenue?  Explain the economic principle you rely on in order to reach your conclusion, and what unique condition is fulfilled when the largest increase in revenue is attained?


Related Discussions:- Explain the economic principle

Sources of monopoly power, Sources of monopoly power: The main sources...

Sources of monopoly power: The main sources of monopoly power include the following: (i) Control of the entire supply of a basic input . It only one firm has access to or co

Describe the labour market information, Question 1: a) Describe the lab...

Question 1: a) Describe the labour market Information. b) What are the basic factors that affect the labour market trend? c) Explain the influence of these factors on th

Meter replacement cost, The town utilizes standard disc type PD water meter...

The town utilizes standard disc type PD water meters for all residential connections. These meters were warranted by the manufacturer to be accurate within two percent of actual f

Americas Dependency on China, What will be the effects of americas dependen...

What will be the effects of americas dependency on china?

Silicon properties, What are the chemical properties of silicon?

What are the chemical properties of silicon?

Second degree price discrimination, Second degree price discrimination (two...

Second degree price discrimination (two part-tariff) An electric utility in Ontario has the following cost structure: TC = 500 + 20Q Suppose that the market (inverse o

Special drawing rights, Special Drawing Rights: SDRs are entitlement g...

Special Drawing Rights: SDRs are entitlement granted to member countries enabling them to draw from the IMF apart from their quota. It is similar to a bank granting a credit l

Business cycle, measures to control business cycle

measures to control business cycle

Money multiplier, Should the bank not have anyone to lend the demand deposi...

Should the bank not have anyone to lend the demand deposit to (like that will ever happen) would the size of the money multiplier decrease? If so, why?

The world bank, THE WORLD BANK: The World Bank is another of the 'Bret...

THE WORLD BANK: The World Bank is another of the 'Brettonwoods Twin Sisters'. The World Bank, as it obtains presently, is an  umbrella organisation, under which five different

Write Your Message!

Captcha
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