Carlos Owns a Chain of Retail Electronic Stores

question 105

Multiple Choice

Carlos owns a chain of retail electronic stores.He is evaluating how he allocates his firm's IMC budget.He receives offers from a variety of advertising media,spends money on his firm's public relations efforts,and is considering electronic media alternatives.Carl must recognize that each IMC alternative

• A) will stand on its own.
• B) is part of the whole.
• C) is part of noncommercial free speech.
• D) doesn't help communicate value to the consumer.
• E) is dictated by the nature of the supply chain.

---

Definitions:

Binding Price Ceiling

A government-imposed limit on the price of a product or service that is set below the market equilibrium, leading to shortages and a decrease in supply.

Producer Surplus

The difference between the amount that producers are willing and able to sell a good for and the actual amount they receive due to market price.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a given time period.

Opportunity Cost

The relinquishment of possible advantages from alternate options upon making a choice.