Which of the Following Is NOT a Reason Why National

question 26

Multiple Choice

Which of the following is NOT a reason why national advertisers might use spot television advertising?

• A) advertise a product with wide-spread distribution
• B) concentrate advertising in areas where market potential is the greatest
• C) concentrate advertising in areas where more ad support is needed
• D) offer support and cooperative advertising to local dealers and retailers

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Definitions:

Normal Profit

The lowest amount of profit a business must earn to stay relevant in its market by covering the costs of missed opportunities.

Marginal Cost

The cost increase brought about by the production of an extra unit of a product or service.

Pure Monopolist

A market situation where a single company is the sole producer and seller of a product or service, without any close substitutes.

Nondiscriminating Monopolist

Refers to a monopolist who charges all consumers the same price for its product or service, as opposed to price discrimination practices.