Which of These Statements Regarding Billboards Is Most Accurate

question 17

Multiple Choice

Which of these statements regarding billboards is most accurate?

• A) Billboards are a good supplemental reinforcement for well-known products.
• B) Billboards are well-suited for pioneering product advertising.
• C) Contrary to popular belief, billboards are not driving hazards since they help keep drivers alert.
• D) Billboards are often too expensive for small local firms and are better suited for national campaigns.
• E) Billboards are more effective in rural areas than in metropolitan ones.

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Definitions:

Differential Revenue

The difference in revenue from one alternative to another, used in decision-making processes.

Differential Cost

The difference in cost between two alternative decisions, or the change in costs resulting from an increase or decrease in output.

Differential Revenue

The variation in income resulting from choosing between two different options or time frames.

Differential Effect

The financial impact of a business decision that results in changes to costs or revenue, compared to maintaining the status quo.