If a firm only has one advertising medium, it maximizes its profit by first setting the marginal benefit from its product equal to its marginal cost of production and then determining the optimal amount to advertise.

Question

Quizplus · Accepted Answer

Maximizing profit requires considering all advertising mediums and determining which combination will yield the highest overall profit. The optimal amount to advertise in a specific medium may not necessarily maximize overall profit.

If a Firm Only Has One Advertising Medium, It Maximizes