Table 8-2 Diamond Jeweler's Is Trying to Determine How to Advertise in Advertise

question 73

Multiple Choice

Table 8-2
Diamond Jeweler's is trying to determine how to advertise in order to maximize their exposure.Their weekly advertising budget is $10,000.They are considering three possible media: tv,newspaper,and radio.Information regarding cost and exposure is given in the table below: Let T = the # of tv ads,N = the # of newspaper ads,and R = the # of radio ads
-According to Table 8-2,what is the advertising budget constraint?

• A)10T + 7N + 20R ≤ 10,000
• B)10T + 7N + 20R ≥ 10,000
• C)800T + 1000N + 400R ≤ 10,000
• D)800T + 1000N + 400R ≥ 10,000
• E)7000T + 8500N + 3000R ≤ 10,000

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Definitions:

MRTS

The Marginal Rate of Technical Substitution; the rate at which a firm can substitute one input for another while keeping the level of output constant.

Marginal Productivity

Marginal productivity refers to the additional output produced as a result of adding one more unit of a specific input, keeping all other inputs constant.

Fixed-Proportion

A production scenario where the input proportions cannot be changed; each unit of output requires the same ratio of inputs.

Production System

The combination of inputs, processes, and outputs that creates goods or services in an organized manner.