Ideally,firms should allocate their marketing budget to service their best customers until:

Question

Quizplus · Accepted Answer

The best choice would be to allocate the marketing budget until marginal revenue equals marginal costs and marginal costs are rising. This is because allocating the budget until this point ensures that the firm is maximizing its profits by serving its most profitable customers before incurring additional costs. Spending beyond this point would result in diminishing returns and lower profitability.

Ideally,firms Should Allocate Their Marketing Budget to Service Their Best