The table shows the relationship for a hypothetical firm between its advertising expenditures and the quantity of its out-put that it expects it can sell at a fixed price of $5 per unit.
To answer this question, we'll need to analyze the information in the table. The table likely contains two columns: advertising expenditures and the quantity of output that can be sold at a fixed price of $5 per unit.
To determine the relationship between advertising expenditures and the quantity of output sold, we can look for any patterns or trends in the data. This will help us understand how changes in advertising spending affect the quantity of output that can be sold.
Here are the steps to get the answer:
1. Start by examining the table and note the different levels of advertising expenditures listed in the first column.
2. Look at the corresponding quantities of output that can be sold at each level of advertising expenditure. Note any changes or patterns in these quantities.
3. Calculate the change in output quantity for each unit increase or decrease in advertising expenditure. This will give you an idea of the impact of advertising on the quantity of output sold.
4. Analyze the data to determine if there is a direct relationship between advertising expenditures and the quantity of output sold. This will help you understand the effectiveness of advertising in increasing sales.
By following these steps and analyzing the data in the table, you will be able to understand the relationship between advertising expenditures and the quantity of output sold by the hypothetical firm.