The elasticity of demand for a firm’s product is -2 and its advertising elasticity of demand is 02 a

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The elasticity of demand for a firm’s product is -2 and its advertising elasticity of demand is 02

a Determine the firm’s optimal advertising-to-sales ratio

Instruction:Enter your response rounded to two decimal places

b If the firm’s revenues are $40,000, what is its profit-maximizing level of advertising