A Consumer Is Reading a Magazine with an Advertisement, but Due

question 117

Multiple Choice

A consumer is reading a magazine with an advertisement, but due to a loud sound he is distracted from reading the advertisement and is not able to grasp its key points. In the context of the communication process, this unplanned static or distortion is called ________.

• A) noise
• B) encoding
• C) feedback
• D) response
• E) decoding

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Definitions:

ATC Curves

Short for Average Total Cost curves, these are graphical representations showing how the average cost of production per unit changes with the level of output.

Industry Expands

Refers to the growth in size or scope of a particular sector of the economy, characterized by increased output, employment, or number of businesses.

Efficiently Allocated

A situation wherein resources are distributed in such a way that maximizes the net benefits gained from their use, leaving no opportunity to make someone better off without making others worse off.

Marginal Cost

The cost incurred from producing one more unit of a good, reflecting changes in production expense with output variation.