a. The candidate is on a tight budget and needs 1,800 votes to win. What is the lowest-cost combination of TV and newspaper ads that will secure their victory (fractional numbers of ads are fine)? b. How much will that bundle of ads cost in total?

Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
Publisher:NICHOLSON
Chapter9: Production Functions
Section: Chapter Questions
Problem 9.4P
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Given: A local citizen is campaigning for an open city council seat. He/she knows
that votes are influenced by TV and newspaper ads according to the following
production function:
Votes = 300TV0.6NP0.2,
where TV represents the number of TV ads and NP represents the number of
newspaper ads. Thus, the marginal product of a newspaper ad is 60TV0.6NP-0.8 and
the marginal product of a TV ad is 180TV-0.4NP0.2. A television ad costs $800 and a
local newspaper ad costs $200.
a. The candidate is on a tight budget and needs 1,800 votes to win. What is
the lowest-cost combination of TV and newspaper ads that will secure
their victory (fractional numbers of ads are fine)?
b. How much will that bundle of ads cost in total?
Transcribed Image Text:Given: A local citizen is campaigning for an open city council seat. He/she knows that votes are influenced by TV and newspaper ads according to the following production function: Votes = 300TV0.6NP0.2, where TV represents the number of TV ads and NP represents the number of newspaper ads. Thus, the marginal product of a newspaper ad is 60TV0.6NP-0.8 and the marginal product of a TV ad is 180TV-0.4NP0.2. A television ad costs $800 and a local newspaper ad costs $200. a. The candidate is on a tight budget and needs 1,800 votes to win. What is the lowest-cost combination of TV and newspaper ads that will secure their victory (fractional numbers of ads are fine)? b. How much will that bundle of ads cost in total?
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