Cost Per Action Refers to

question 5

Multiple Choice

Cost per action refers to

• A) a fixed amount of money paid to the site for every time a visitor clicks on the ad.
• B) a fixed amount of money paid to the site for placement of the ad.
• C) a fixed amount of money paid to the site for every sale that originated from an ad posted on that site.
• D) a fixed percentage the site gets paid for placing the ad.
• E) a fixed discount given to a visitor for clicking on the ad.

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Definitions:

Profit Maximization

The process or strategy undertaken by a firm to generate the maximum possible profits with the available resources and market conditions.

Short-run Equilibrium

Describes a situation in a market where supply equals demand within a short period, without enough time for all factors of production to adjust.

Monopoly

A market structure characterized by a single seller, selling a unique product in the market.

Tacit Collusion

An informal and indirect form of collusion among competitors without explicit agreement, often through signaling and understanding of mutual interests.