A local restaurant has an advertising budget of $10,000. The restaurant can purchase TV ads from a local station (X) or send mailers to local mailboxes (Y).The price for a TV ad is PX= $1,000. The price to send ads through the mail is PY= $500 per campaign. Suppose the local station is running a special where if an advertiser buys 5 TV ads, the sixth ad is free (limit one free ad). On the graph below, how much is A? A B BL

Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
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A local restaurant has an advertising budget of $10,000. The restaurant can purchase TV ads from a local station (X) or send mailers to local mailboxes (Y).The price for a TV ad is
PX= $1,000. The price to send ads through the mail is PY= $500 per campaign.
Suppose the local tv station is running a special where if an advertiser buys 5 TV ads, the sixth ad is free (limit one free ad). On the graph below, how much is A?
A
B
O 10
BOD
O 20
05
06
CD
BL
E
X
Transcribed Image Text:A local restaurant has an advertising budget of $10,000. The restaurant can purchase TV ads from a local station (X) or send mailers to local mailboxes (Y).The price for a TV ad is PX= $1,000. The price to send ads through the mail is PY= $500 per campaign. Suppose the local tv station is running a special where if an advertiser buys 5 TV ads, the sixth ad is free (limit one free ad). On the graph below, how much is A? A B O 10 BOD O 20 05 06 CD BL E X
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