To maximize profits, the firms advertising-to-sales ratioo

0 votes
    Should be equal to the ratio of the marginal revenue divided by the full marginal cost of advertising.
     should be equal to the ratio of the price and advertising elasticity of demand, Ep/EA.
     varies from firm to firm depending upon the effectiveness of the advertising campaigns conducted.
     should be equal to the ratio of the advertising and price elasticity of demand, EA/Ep.
asked Jun 2, 2013 in Economics by anonymous
    

1 Answer

0 votes
should be equal to the ratio of the advertising and price elasticity of demand, EA/Ep.
answered Jun 3, 2013 by Xyz ~Expert~ (3,650 points)



...