The Internet Is Direct and Interactive and Consumers Are Spending

question 22

Multiple Choice

The internet is direct and interactive and consumers are spending more and more time with it. The next big area for advertising growth is

• A) out of home media
• B) product placement in mainstream movies
• C) word of mouth promotions
• D) mobile communications

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Definitions:

Long-Run Equilibrium

A state in which all firms in a given industry are making zero economic profit, leading to an optimal allocation of resources given current technology and factor prices.

Selling Price

The amount of money for which a product or service is sold to consumers.

Average Total Cost

The total cost per unit of output, calculated by dividing the total cost by the quantity of output produced.