Which of the Following Should a Client's Evaluation of Its

question 27

Multiple Choice

Which of the following should a client's evaluation of its advertising agency's performance NOT take into account?

• A) performance of account representatives
• B) financial status of the agency
• C) qualitative considerations, such as the quality of the agency's efforts in creative, media, etc.
• D) market performance measures, such as sales and market share

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Definitions:

Average Cost

The total cost of production divided by the quantity produced, used to determine the efficiency and profitability of production.

Competitive Firm

A company operating in a market where it must compete against others for the same customers or resources, characterized by its efforts to offer better products, prices, or services.

Inelastic Demand

Characterized by a consumer's lack of sensitivity to price changes, resulting in minimal changes in quantity demanded despite fluctuations in price.

Competitive Industry

An industry characterized by numerous firms, where no single firm can dictate the price of goods or services.