Suppose the dairy industry is made of up only by the three firms above; Cow Haven, Free Cows, and Happy Cows.
-Refer to the table above. If the cost per unit of advertising is constant at $820, what is the level of advertising per week that maximizes the industry joint profit?

Question

Quizplus · Accepted Answer

To maximize industry joint profit, we need to find the level of advertising where the marginal revenue from advertising equals the marginal cost. Given that the cost per unit of advertising is constant at $820, we compare this with the marginal revenue from advertising at each level. The level where these are equal or where marginal revenue is just above $820 is the optimal level.

Suppose the Dairy Industry Is Made of Up Only by the Three