Business, 17.04.2020 01:07 jadawada223

Bianca grows beautiful orchids. Her total fixed cost is $150 a day, and her average variable cost is $1 a plant. Few people know about Bianca's Orchids and she is maximizing her profit by selling 25 orchids a day for $7 a plant. Bianca thinks that if she spends $20 a day on advertising, she can increase her market and sell 44 orchids a day for $7 a plant. If Bianca's belief about the effect of advertising is correct, can she increase her economic profit by advertising?

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Bianca grows beautiful orchids. Her total fixed cost is $150 a day, and her average variable cost is...

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