Air Miles Sending Permission-Based Text Alerts Customized by Transaction Activity

question 2

Multiple Choice

Air Miles sending permission-based text alerts customized by transaction activity to encourage shopping at affiliated sponsors is an example of:

• A) digital partnership.
• B) cooperative advertising.
• C) SMS advertising.
• D) mobile display advertising.

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Definitions:

Producer Surplus

The difference between the amount producers are willing to accept for a good or service versus what they actually receive.

P = MC

An economic principle stating that the optimal level of output occurs when the price (P) equals marginal cost (MC), guiding firms in perfect competition on production decisions.

Perfect Competition

A market structure characterized by a large number of small firms, homogenous products, free entry and exit, and perfect information, leading to firms being price takers.

Marginal Cost

The expense incurred from manufacturing an additional unit of a product.