Multiple Choice
The price elasticity of demand for nursery products is -10. The advertising elasticity of demand is 0.4. Using the "Rule of Thumb for Advertising," the profit maximizing level of advertising will be set at ________ of sales.
A) 0.25 percent
B) 0.4 percent
C) 4 percent
D) 40 percent
Correct Answer:
Verified
Correct Answer:
Verified
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