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1 vote

Why does YouTube want to make money from video ads?

Why does YouTube want to make money from video ads? YouTube is a business. A primarily objective of a business is to maximize profit. No serious business will manage its affairs with intent of just ...
1muflon1's user avatar
  • 57k
1 vote

Is it possible to absorb the cost of advertising into the production cost for information goods in situations where attention is scarce?

The cost of advertising is already considered in production, such as when calculating MC=MB. A good example of a familiar product is beer, which has 2 major costs: water and advertising. I'll note ...
RegressForward's user avatar
1 vote

The purpose of advertising for Pepsi

Advertising is hard to understand if you take classroom economics models too literally. I highly recommend diving into the literature on behavioural economics if you are truly interested. But for the ...
heh's user avatar
  • 1,806
1 vote

Optimal Pricing with Advertising

Given how the problem is set up, I think they want you to take A as given when you choose price. If that is the case, then you can find the comparative static $\partial P / \partial A$ We can think ...
VCG's user avatar
  • 766
1 vote

What would be the economic impact of regulating advertising?

The first thing we must ask is about which part of advertising are we speaking? Are we talking about advertising on television and other entertainment mediums or are we talking about advertisement via ...
DornerA's user avatar
  • 1,568

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