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:

Tori Busshi

A renowned Japanese sculptor from the Asuka period, credited with creating the iconic Buddhist statue Shaka Nyorai.

Shingon Buddhism

A major school of Japanese Buddhism, characterized by esoteric teachings, rituals, and practices aimed at achieving enlightenment.

Taizokai Mandara

A complex and symbolic diagram or cosmic map in Esoteric Buddhism, representing the Womb World and the principle of the physical universe.

Kamakura Period

A period in Japanese history from 1185 to 1333, known for the rise of the samurai class and the establishment of a military-led government.