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 Summary
Optimal number of advertising days is found.
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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 ...
Education
- BEng (Hons) , Birla Institute of Technology and Science, India
- MSc (Hons) , Birla Institute of Technology and Science, India
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