Which of the Following Statements Is True of the Role

question 30

Multiple Choice

Which of the following statements is true of the role of advertising in business markets?

• A) Advertising is unsuitable for explaining any new features that a product might have.
• B) Sales calls are more economical than reminder advertisements.
• C) Sales calls are more effective than advertisements at reminding customers how to use a product and reassure them about their purchase.
• D) Sales representatives can use copies of the company's ads to legitimize their company and products.
• E) Advertisements are the least preferred tools when intended to generate leads for sales representatives.

---

Definitions:

Cobb-Douglas Production Function

Production function of the form q = AK^aL^b, where q is the rate of output, K is the quantity of capital, and L is the quantity of labor, and where A, a, and b are constants.

Optimal Input Demands

The combination of inputs that minimizes the cost of producing a given output or maximizes output for a given cost.

Expenditures

Money spent on goods, services, or other expenses.

Scale Economies Index

A measurement that assesses the advantages a business gains due to the scale of its operation, typically resulting in reduced costs per unit as production increases.