Using the Lagrangian Multiplier Technique,you Allocate Your $1,000,000 Advertising Budget

question 53

Multiple Choice

Using the Lagrangian multiplier technique,you allocate your $1,000,000 advertising budget between four media markets so as to maximize your profits.Your assistant informs you that the Lagrangian multiplier is equal to -$0.50.From this you conclude that:

• A) you are allocating your budget across markets optimally.
• B) advertising is worthless.
• C) another dollar of advertising would increase profits $0.50.
• D) another dollar of advertising would decrease profits $0.50.
• E) you could earn more profit with a larger advertising budget.

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Definitions:

Steering Wheel

is a component of a vehicle that the driver uses to control the direction of the vehicle's wheels, crucial for navigating and maneuvering the vehicle.

Power Steering Fluid

The hydraulic fluid used in power steering systems to transmit the power needed to assist in turning the wheels.

Operating Temperature

The range of temperature within which a mechanical or electrical device can function optimally and safely.

Flow Meter

A device used to measure the rate or quantity of a fluid moving through a pipe or opening.