If you have the following estimated model SALES = 115 - 2.5 PRICE + 20 ADVERT - 2.50 ADVERT2 where PRICE is in $, and SALES and ADVERT are in $1000. What is the marginal effect of advertising on sales when advertising level is $1500? Select one: O a. Sales decreases by $1,500. O b. Sales increases by $1,500. O C. Sales increases by $7,500. O d. Sales increases by $12,500.

If you have the following estimated model SALES = 115 - 2.5 PRICE + 20 ADVERT - 2.50 ADVERT2 where PRICE is in $, and SALES and ADVERT are in $1000. What is the marginal effect of advertising on sales when advertising level is $1500? Select one: O a. Sales decreases by $1,500. O b. Sales increases by $1,500. O C. Sales increases by $7,500. O d. Sales increases by $12,500.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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