Explain the economic principle, Microeconomics

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?

Posted Date: 2/27/2013 12:17:46 AM | Location : United States







Related Discussions:- Explain the economic principle, Assignment Help, Ask Question on Explain the economic principle, Get Answer, Expert's Help, Explain the economic principle Discussions

Write discussion on Explain the economic principle
Your posts are moderated
Related Questions
PRICE ADJUSTMENTS UNDER FIXED EXCHANGE RATE: In a flexible exchange rate regime trade deficits (surpluses) are automatically corrected by a depreciation (appreciation) of a co

Suppose the price elasticity of demand for extra dark chocolate truffles is -6. Hold other things constant , if price for Extra Dark Chocolate truffles is decrease by 3%, what wil

Explain why each of the following factors may influence the own price elasticity of demand for a commodity. (i) Consumer preferences, that is, whether consumers regard the commod

Q. What do you meant by Relative Poverty? Relative Poverty: A measure of poverty based on an individual or family's relative income compared to overall average level of income

Type of total outlay

what do you understand by demographic window acess by india

What is the Macroeconomics? Macroeconomics is study about the aggregate behavior of the economy like how the actions of all the individuals and firms within the economy intera


What is meant by labor force?    In economics the labor force is the group of people who have a potential for being employed. Normally, the labor force having of everyone above

Please provide detailed answers, showing all your work, to all five sections in problem 15.9 in the Nicholson and Snyder book. This is an individual take home task due at 11:59pm o