For a profit- maximising firm, the amount it should spend on promotions should be
A) that where the gap between the marginal revenue from the promotion and the marginal cost of the promotion is at its maximum.
B) that where the marginal revenue from the promotion equals the marginal cost of the promotion.
C) that where the average revenue from the promotion minus the average cost of the promotion is at a maximum.
D) as little as possible because all promotion costs money.
E) that where the average cost of promotion equals the average revenue earned from the promotion.
Correct Answer:
Verified
Q2: As more firms enter the market, we
Q3: If a monopolistically competitive firm were making
Q4: In monopolistic competition at the profit- maximising
Q5: Paul's bakery, a monopolistically competitive firm, is
Q6: If firms in a monopolistically competitive industry
Q8: A monopolistically competitive firm engaging in non-
Q9: The term 'collusive oligopoly' is now given
Q10: You are given the following information about
Q11: Which of the following make collusion more
Q12: Which of the following statements are applicable
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