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 $550, what is the level of advertising per week that maximizes the industry joint profit?

Question

Quizplus · Accepted Answer

The level of advertising per week that maximizes the industry joint profit is 5, because at this level of advertising, the marginal revenue from advertising is equal to the marginal cost of advertising.

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