Which of the Following Statements Is True

question 67

Multiple Choice

Which of the following statements is true?

• A) If marginal costs are constant, then it is optimal to advertise until the last dollar spent on advertising generates one additional dollar of sales.
• B) If the demand curve shifts leftward as the advertising expenditure increases, then the advertising elasticity of demand is positive.
• C) If the advertising elasticity of demand declines and consumer demand becomes more price elastic, then the optimal advertising-to-sales ratio declines.
• D) If the advertising elasticity of demand is positive, then the demand curve must be upward sloping.

---

Definitions:

Ear Of The Leader

The leader's attentiveness to feedback, ideas, and concerns from others, symbolizing openness and effective communication.

George Patton

A prominent and skilled U.S. Army general during World War II, known for his fierce leadership and innovative strategies.

Kurt Lewin

A German-American psychologist known for his contributions to social, organizational, and applied psychology.

Laissez-Faire Style

A leadership approach characterized by minimal direct supervision, where team members have the freedom to make decisions and solve problems on their own.