Selma makes the best soaps. Her total fixed cost is $10 per day ...

[mmmmm]

Question 1

The Role of Advertising

Consider a gym that earns a profit of $25.75 per member. An advertisement that costs $360.50 would increase membership by 10. To make the advertisement worthwhile, how many of the new members must persuade just one other person to join the gym?
◦ 4
◦ 6
◦ 5
◦ 3

Question 2

Selma makes the best soaps. Her total fixed cost is $10 per day and her average variable cost is $1.50 per bar. When she first starts her company, very few people know about her soaps and she maximizes her profit by selling 24 bars at $9 a bar. Selma thinks that if she spends $120 a day on advertising, she will sell 102 bars at $9 a bar.
If advertising does help her sell 102 bars, her economic profit ________ (increases/decreases) by ________.
Please round your answer to two decimal places.
◦ increases, $582.00
◦ increases, $465.00
◦ decreases, $582.00
◦ decreases, $465.00

[sakura282000]

A FREE account is required to view all solutions! Click to Register

Login with Facebook Login with Google Login with Email

Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.

Answer Preview

Only 50% of students answer this correctly

[mmmmm]

YES! Correct, THANKS for helping me on my review

[steff9894]

Thanks for the timely response, appreciate it