Ads in the Boring Business Magazine Are Read by 300

question 27

Multiple Choice

ads in the boring business magazine are read by 300 lawyers and 1,000 M.B.A.s.Ads in the consumer publication are read by 250 lawyers and 300 M.B.A.s.If Harry had $3,250 to spend on advertising, if the price of ads in the boring business magazine were $500, and if the price of ads in the consumer magazine were $250, then the combinations of recent M.B.A.s and lawyers with hot tubs whom he could reach with his advertising budget would be represented by the integer values along a line segment that runs between the two points

• A)(3, 900, 4, 550)and (1, 950, 7, 800).
• B)(3, 900, 0)and (0, 7, 800).
• C)(0, 3, 900)and (1, 950, 0).
• D)(3, 250, 3, 900)and (1, 950, 6, 500).
• E)(2, 600, 0)and (0, 6, 500).

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Definitions:

Concentration Ratio

A measure used in economics to assess the degree to which a market or industry is dominated by the top firms.

Market Shares

The percentage of an industry's sales that is earned by a particular company over a certain time period.

Monopolistically Competitive

Characterizing a market environment where several sellers offer differentiated products, resulting in non-price competitive strategies.

Price-Taker

An economic agent (e.g., a firm or consumer) that has no control over the market price and must accept prices as given.