| Summary: | A study examined a scenario whereby a marketing division of a monopoly faces two marketing options, namely, market enlargement and elasticity improvement. Data were obtained using a CES demand function in a simple model. Findings suggested that the two activities are complementary, so that for some cost configurations, the firm will find it profitable to jointly implement the two options simultaneously when either option alone would produce a loss. Findings indicated that the same joint implementation conclusion is also applicable for consumer surplus, and hence a fortiori also under conditions of a social welfare objective. Findings are discussed in detail.
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