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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.