The Effectiveness of an Ad's Placement Is Often Judged by Its

question 20

Multiple Choice

The effectiveness of an ad's placement is often judged by its cost per thousand (CPM) ,or the cost of reaching 1,000 audience members.For example,an ad that costs $20,000 to place in a major newspaper that is read by 1 million people has a CPM of

• A) $2.00.
• B) $20.00.
• C) $200.00.
• D) $1,000.00.

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Definitions:

Economies of Scale

Economies of scale are cost advantages that enterprises obtain due to size, output, or scale of operation, with cost per unit of output generally decreasing with increasing scale.

Economies of Scale

Cost advantages reaped by companies when production becomes efficient, as the scale of operation increases with the reduction in average costs.

Fixed Costs

Fixed costs are business expenses that remain unchanged regardless of the level of production or sales, such as rent, salaries, and insurance premiums.

Capital

Resources made and used by humans to produce goods and services, including buildings, machinery, and equipment.