Dr Bootsma Designed and Produced a 30 Second Radio Commercial

question 4

Multiple Choice

Dr. Bootsma designed and produced a 30 second radio commercial for a local automobile dealer. Next, she had the three most widely listened to radio stations in town play the commercial 15 times a day, everyday, for two weeks. She waited until the end of the two-week period, then she called Jack to see what his sales had been lately. What experimental design did she use?

• A) time series
• B) one-shot case study
• C) static group comparison
• D) classical experiment

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Definitions:

Short-Run Equilibrium

A situation in a market where demand equals supply, resulting in a stable price level, but which may not reflect long-term market dynamics.

Competitive Price-Taker

A rephrased scenario where businesses in competitive markets accept the prevailing market price as given because they have no power to influence it.

Profit

The financial gain realized when the revenue earned from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Marginal Revenue

The additional revenue that a firm receives from selling one more unit of a good or service.