Which of the Following Statements Concerning CPMs as a Common

question 92

Multiple Choice

Which of the following statements concerning CPMs as a common measure of efficiency in the advertising industry is incorrect?

• A) It is the most complex measurement method used for measuring the efficiency in the advertising industry.
• B) The figure of thousand in the CPMs generally refers to the dollar cost of reaching 1,000 prospects.
• C) A major disadvantage of the use of CPMs relates to its simplicity.
• D) It is a common measure of efficiency or productivity in the advertising industry.

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Definitions:

Diagram (A)

A graphical representation used to illustrate or clarify information, processes, or systems.

Price

The amount of money expected, required, or given in exchange for something else.

Quantity

The amount or number of a material or immaterial good considered as a unit or in total.

Long-Run Cost Diagram

A graphical representation that shows how the costs incurred by a firm change over time with varying levels of output when all inputs are variable.