A Company Paying a Set Amount to Facebook for Every

question 131

Multiple Choice

A company paying a set amount to Facebook for every time a user clicks on its ad is known as_______ , whereas a company that pays pennies for every 1,000 times its ad Loads on a Facebook Page and people may see it is referred to as ________.

• A)set rate; fixed amount
• B)cost per click; cost per thousand
• C)cost per thousand; cost per click
• D)fixed amount; set rate

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Definitions:

Willingness to Pay

The highest price a person is willing to pay for a product or service, indicating how much they value it.

Consumer Surplus

The deviation between the cumulative amount consumers are inclined to spend on a good or service and the amount they really spend.

Demand Curve

A graph showing the relationship between the price of a good or service and the quantity of that good or service consumers are willing and able to purchase, typically downward sloping.

Price

The financial sum necessary for acquiring a good or service.