A major automobile manufacturer is considering how to allocate a $2 million advertising budget between two types

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A major automobile manufacturer is considering how to allocate a $2 million advertising budget between two types of television programs: NFL football games and PGA tour professional golf tournaments. The following table shows the new sports utility vehicles (SUVs) that are sold when a given amount of money is spent on advertising during an NFL football game and a PGA tour golf event.
A major automobile manufacturer is considering how to allocate a

The manufacturer's goal is to allocate its $2 million advertising budget to maximize the number of SUVs sold. Let F be the amount of money devoted to advertising on NFL football games, G the amount of money spent on advertising on PGA tour golf events, and C(F,G) the number of new vehicles sold.
a) What is the objective function for this problem?
b) What is the constraint?
c) Write a statement of the constrained optimization problem.
d) In light of the information in the table, how should the manufacturer allocate its advertising budget?

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Microeconomics

ISBN: 978-0073375854

2nd edition

Authors: Douglas Bernheim, Michael Whinston

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