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Finding optimal number of advertising days

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Assume Nail Mania advertises in the local newspaper. Each day it advertises costs $100. Over the past several months, Nail Mania has conducted market research and developed the following information

Number of days advertised per week Number of customers per week

0 100
1 200
2 290
3 355
4 375
5 390
6 400
7 400

If the net revenue (payments less cost of goods sold) is $5, how many days of advertising should Nail Mania buy each week?

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Solution Preview

Please refer attached file for better clarity of table.

Number of days advertised per week Total Ad. Cost Number of customers MC*
n TC=100*n Q Change in TC/change in Q
0 0 ...

Solution Summary

Optimal number of advertising days is found.