Propose That You Work for Taco Bell and You Advertise

question 56

Multiple Choice

Propose that you work for Taco Bell and you advertise during The Voice.Its rating is 19.This is equal to 21.3 million TVs.The Voice charges $700,000 for a 30-second ad.If a meal contribution at Taco Bell is $0.60, how many purchases are required to break even for the ad costs?

• A) 1,454,598
• B) 700,000
• C) 420,000
• D) 1,166,667

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Definitions:

Perfectly Competitive

A market structure characterized by many buyers and sellers, homogeneous products, and the absence of barriers to entry, leading to optimal price and output levels.

Excessively High Profits

Profits that significantly exceed the normal expected return, often seen as unreasonable or indicative of limited competition.

Perfectly Competitive Market

A market structure characterized by many buyers and sellers, homogenous products, and free entry and exit, leading to price determination purely by demand and supply.

Soybeans

A type of legume native to East Asia, widely grown for its edible bean, which has numerous uses including oil, animal feed, and as a food item.