Martha Has Created Two Ads Through Google AdWords

question 118

Multiple Choice

Martha has created two ads through Google AdWords. Both ads show that they are eligible, but one ad has the message 'Bid is below the first page bid estimate' and a value for the bid. Which one of the following is an improvement Martha should try, to optimize her ads?

• A) Increase the ad's cost per impression bid
• B) Increase the ad's cost per click bid
• C) Change her ad to an image ad
• D) Change the destination URL of her ad

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Definitions:

Oligopolist's MC Curve

The marginal cost curve for a firm in an oligopoly, illustrating the cost of producing an additional unit of output, which can influence pricing and output decisions in a market with few competitors.

Total Revenue

The total amount of money generated by a business from the sale of its products or services before any costs or expenses are subtracted.

Collude

The act of cooperating or conspiring, especially in secret, between firms to limit competition and increase market profit at the expense of consumers.

Price and Output Results

The outcomes in terms of price levels and quantity of goods or services produced and sold, often analyzed in context of market conditions or economic policies.