the shadow price for Maximum radio $ is 2.03 and the maximum increase allowed is $1575. This means that each additional dollar spent in radio advertising (up to $1575) will increase the audience by 2.03. Thus, if the management approves spending $200 per week extra on radio advertising, the audience coverage would increase by 2.03*200 = 406 to 67,646.

Answer rating: 100% (QA)

a What would be the impact if management approved spending 200 more on radio advertising each week I... View the full answer