PS5_ProblemSet - AEM 4150 PRICE ANALYSIS Fall 2008 Problem...

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AEM 4150 PRICE ANALYSIS Fall 2008 Problem Set #5 This assignment is due at the beginning of class on Thursday October 16, 2008. 1. Answer all of the following questions. (a) Which advertising should be market share neutral, generic advertising or brand advertising? (b) True or false. Average benefit cost ratio (ABCR) of advertising measures the return to an additional dollar spent on advertising. Explain why if you think it is false. (c) True or false. The U.S. generic advertising assessment on pork producers is a unit tax. Explain why if you think it is false. (d) True or false. To obtain the marginal benefit cost ratio (MBCR) of advertising, we need to simulate a no-advertising scenario where no advertising is in effect. Explain why if you think it is false. (e) Suppose you work for the Coca-Cola Company and you have a ten-million-dollar advertising budget for 2009 that needs to be spent on four media––TV, radio, outdoor, and print. You estimated that the media-specific advertising elasticities are 0.06 for TV,
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This homework help was uploaded on 02/20/2009 for the course AEM 4150 taught by Professor Kaiser,h.m. during the Fall '07 term at Cornell University (Engineering School).

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PS5_ProblemSet - AEM 4150 PRICE ANALYSIS Fall 2008 Problem...

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