What Is the Relationship Between a Client's Paid Result (An

question 11

Multiple Choice

What is the relationship between a client's paid result (an advertisement) and a client's organic search result?

• A) There is no correlation between paid results (the advertisements) and organic search results.
• B) When organic search results are good (on the first page of results), the corresponding advertisement will cost less to display.
• C) The better the organic search result, the higher the ad will be posted in order of paid results.
• D) The higher the budget for the paid result (the advertisement), the higher the organic search result would be.

---

Definitions:

Profit-maximizing Output

The level of production at which a firm achieves the highest possible profit, determined by the point where marginal revenue equals marginal cost.

Oligopolistic Model

A market structure characterized by a small number of large firms dominating the market, leading to limited competition and high barriers to entry.

Monopolist

An individual or firm that holds a monopoly in a particular market, having exclusive control over the supply of a good or service and, therefore, substantial market power.

Cournot Model

An economic model describing an industry structure in which companies compete on the amount of output they will produce, which they decide independently and at the same time, leading to a state of equilibrium.