The revenue of Better Option Pink Mobile Phone Company is related to
advertising (a) and phones sold (q). Specifically, the relationship can be
expressed as:
R = q2
+ 3qa + a2
However, the budget constrain on advertising and production is given by q + a
= 100.
Required:
(i) Determine the maximum revenue with the advertising and production
constraints. (4 marks)
(ii) What does ^ represent economically? (2 marks)