Advertising Agencies Typically Receive

question 190

Multiple Choice

Advertising agencies typically receive

• A)large fees from the companies whose ads they develop and place.
• B)a 15 percent commission from the company whose product they are helping advertise.
• C)a 10 percent commission from the advertising company and 10 percent from the media they use.
• D)a 25 percent commission paid by the media from which it makes purchases.
• E)a 15 percent commission paid by the media from which it makes purchases.

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Definitions:

Market Equilibrium

Occurs when the quantity of goods demanded by consumers equals the quantity of goods supplied by producers, resulting in a stable market price.

Price

The amount of money required to purchase a good or service, typically determined by supply and demand.

Quantity

The amount or number of a product or service that is available for use or sale.

Technological Advance

Innovations and improvements in technology that increase production efficiency or introduce new goods and services.