Multiple Choice
Suppose you own a business and your own price elasticity is -2. In addition, suppose your advertising elasticity of demand is 0.50. If your marginal cost per unit is $4, what is your optimal advertising-to-sales ratio?
A) 0.25
B) 0.375
C) 0.625
D) 1.25
Correct Answer:
Verified
Correct Answer:
Verified
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