CPM Refers To

question 52

Multiple Choice

CPM refers to:

• A) each instance of an advertisement being viewed by a user.
• B) cost per thousand impressions.
• C) a concept where advertisers do not pay unless someone clicks on their ad.
• D) the maximum amounts of money advertisers are willing to pay for each click on their ads.
• E) the number of users who clicked an ad divided by the number of times the ad was delivered.

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Definitions:

Price-Taker Firm

A company that has no control over the market price and must accept the prevailing market price for its product or service.

Price-Taker Model

A market situation where individual firms do not have the power to set prices for their products, instead accepting the market price.

Market Price

The present rate at which an asset or service is being offered for sale or purchase in the open market.

Product Price

The monetary cost of a good or service in the marketplace.