Your company operates in a perfectly competitive market. You have been told that advertising can help you increase sales in the short run. Would you create an aggressive and expensive advertising campaign for your product? Fully explain why or why not. You cannot answer with a "yes, if…." Or "no if…" type of answer.

Ronald sees that his employer's stock has grown from $20 a share to $60 a share this year, while most stocks have seen only 5% growth. his employer offers to let him convert a large portion of his salary into stock options. what is not a valid reason to turn down the stock offer? a)stocks with high returns have high volatility, and ronald's company may not grow further. b)ronald may be taxed more for capital gains than he would be for employment income. c)stock options are illiquid, and ronald may not be able to use them to pay for unexpected bills. d)ronald would be committing stock fraud if he exercises the options.