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

Causes of slow growth - structure of national income, CAUSES OF SLOW GROWTH...

CAUSES OF SLOW GROWTH: A recent empirical study seeks to explain statistically the variations in inter-country growth rates. The global pattern of growth is shown to depend on

Visit to village panchayat fo data agriculture based project, about visit t...

about visit to village panchayat fo data agriculture based project

A consumer sensitivity to interest rates, Interest rate sensitivity can als...

Interest rate sensitivity can also be understood from another perspective.  The total cost of a commodity is not just its price, but also what must be paid to borrow money to purch

Calculate revenue, Question 1  (9 marks) During the 1990s, technologi...

Question 1  (9 marks) During the 1990s, technological advance reduced the cost of computer chips.  Explain, with the use of supply and demand diagrams, how the following mark

Lori teaches singing. her fixed costs are $1, Price | Quantity demanded ___...

Price | Quantity demanded _________________________ 0 250 50 200 100 150 150 100 200 50 250 0 A) Calculate Lorie''s profit-maximizing output, price, and economic profit. B) Do yo

Public-private partnerships, Public-Private Partnerships (PPPs):A form of f...

Public-Private Partnerships (PPPs):A form of financing public investment and sometimes the direct provision of public services, in that finance is provided by private investors (in

Assignment help, I need to find recent disney cruise stories and what micro...

I need to find recent disney cruise stories and what microeconomic theory it is and what they should do. for example renovating a ship why did they and what theory would that be?

Concepts of income and substitution effects, Concepts of Income and Substit...

Concepts of Income and Substitution Effects:   Change in demand for a good due to one unit change in price of that good for given prices and money income is known as own price

How a country exchange rate influence balance of payment, How might a count...

How might a country exchange rate influence the balance of payments? Definition of the exchange rate; price of domestic currency in another (basket of) currency (currencies). C

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