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
AVOGADRO''S HYPOTHESIS In equal volumes of gases including all under similar conditions of temperature & pressure keeps equal number of molecules. Avogadro''s law and Applicatio

Q. Food purchases are relatively price inelastic since food is a necessity. If food is so required for life, how will we explain the heavy advertising of food items at the

Deadline is 20 Hours... 1. A. Explain how one derives the indifference curves from a 3-dimensional utility function. Draw a graph and explain. Which principle explains the concav

What are the basis for International Trade?


#quesSuppose that two anti-marijuana proposals are currently being debated in Congress. Proposal I will reduce the supply of marijuana and cause its price to rise by 7%. Proposal I

Planned Order Releases - MRP System In an MRP system, if gross requirements exceed the quantity on hand and on order, a net requirement results. Planned orders are created to

I want to address Inflation in Pakistan but it itself is a wide topic plz suggest me how to address Inflation to right a research article?????

Calculating Variance (σ) The standard deviations of the 2 jobs are: The standard deviation is used when there are several outcomes instead of only two. * An Examp

Pensions: Pension benefits are paid to individuals who have retired from active employment, in order to support themselves in last years of their lives. Pension programs can be spo