What Do Unilever and Procter & Gamble Have in Common

question 48

Multiple Choice

What do Unilever and Procter & Gamble have in common?

• A)Revenues at both companies have been hurt by regulations concerning tobacco advertising and promotion.
• B)Both companies utilize extension approaches to advertising.
• C)Both companies rank high in terms of non-U.S.ad spending.
• D)Both companies use a great deal of corporate advertising.
• E)Both companies use the same advertising agency.

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Definitions:

Marginal Revenue

The additional income earned from the sale of one more unit of a product or service.

Industry Standard

A set of criteria within an industry that acts as an agreed-upon norm or benchmark for products, services, and processes.

Economies of Scale

A concept in economics where increasing the scale of production leads to a decrease in the average cost of each unit produced.

Natural Monopolies

Industries in which high infrastructure costs and other barriers make it efficient for a single company to supply all of the market's needs.