A profit-maximizing company that manufactures sports clothing wants to spend $25 million to have a professional athlete appear in commercials for its clothing. Which of the following is the best economic reason for the company to spend the money?
A) The company sells $25 million worth of clothing per year.
B) The company could cover the cost of the athlete's contract with profits from previous years.
C) The additional revenue generated by the commercials would be greater than the additional costs of producing the clothing.
D) The additional revenue generated by the commercials would be greater than $25 million plus the costs of producing the additional clothing.
Correct Answer:
Verified
Q28: If there were a decrease in the
Q29: What is most likely to happen when
Q30: Which of the following best describes why
Q31: Which of the following is the most
Q32: Auto dealers begin to offer new cars
Q34: Because Country A has no domestic sources
Q35: Other than wages, what are two issues
Q36: Which of the following is true of
Q37: Recently, the hourly wage that parents are
Q38: James borrows $10,000 from the bank. By
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents