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By W. Duncan. Reekie

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Zero population and zero net investment are feasible, if unlikely achievements. No country has yet attained zero population growth, although in advanced countries such growth has tended to flatten out in recent years. Zero net investment, even if desirable, would be difficult to achieve given a progressively rising propensity to save as disposable incomes increase. Of the three contributors to economic growth, technological change is the most important. (10) This variable cannot be rendered static as long as homo sapiens remains a thinking creature.

The Independent TV networks are regionally based, which enables the advertiser to be geographically selective if he wishes. Flexibility by time of presentation is also possible. The advertiser can aim at the mass market between the hours of 8 and 10 in the evening; he can aim at teenagers during the broadcast hours of pop music programmes; or at men during the Saturday afternoon sports shows. The main disadvantages are the high absolute cost and the need to get the message over in a few seconds.

For any one output level production costs wi II not vary but, as price is raised or lowered, advertising and promotion costs wi II vary inversely. ) The various price and cost line combinations can then be summarised on what Verdoorn calls a 'recapitulation diagram', as in Fig. 3. The overall point of maximum profit can then be readily found, and the appropriate choice made as to price, channel, product quality and advertising. Clearly, since only the plotted points on the diagram are practical possibilities, maximum profits will not simply be at the greatest vertical distance between any pair of cost and revenue lines.

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