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Use the information below to answer the following question. Fact 13.3.1 ...
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Use the information below to answer the following question.Fact 13.3.1Suppose that at one of the Talbots shops, marginal cost of a coat is constant at $150, and total fixed cost is $3,000 a day. The shop maximizes its profit by selling 15 coats a day at $500 per coat. Then the shops nearby increase their advertising. The Talbots shop responds by spending $1,500 a day more on advertising its coats. As a result, its profit-maximizing number of coats sold increases to 25 a day at $400 per coat.Refer to Fact 13.3.1. As a result of increased advertising, Talbots' markup
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