Sally Sells Sandals

question 51

Multiple Choice

Sally sells sandals.She can advertise on radio,A₁,or on television,A₂.Profits depend on advertising according to p = 100 + 10A₁ + 20A₂ - A²₁ - A²₂ + 0.5A₁A₂.The profit-maximizing levels of radio and television advertising are:

• A) A₁ = $8 and A₂ = $12.
• B) A₁ = $12 and A₂ = $12.
• C) A₁ = $8 and A₂ = $8.
• D) A₁ = $12 and A₂ = $8.
• E) A₁ = $10 and A₂ = $10.

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