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Scenario 13-2 A National Radio Broadcaster's Association Hosts an Annual Convention That

question 62

Multiple Choice

Scenario 13-2
A national radio broadcaster's association hosts an annual convention that attracts station owners and program managers, as well as ad agencies and media planners. As a media planner, you take part in forums on the current status of traditional radio, the competition between AM and FM formats, the growth of satellite and Internet radio, and the rise of new technologies. During one forum, a professor of broadcasting initiates a discussion and poses a number of questions based on real-life situations that he has encountered over the years.
-(Scenario 13-3) The orange juice retailer believes that the appeal of its product cuts across just about every demographic,geographic,and psychographic segment.Thus,one objective for your media plan would be to achieve the widest reach possible.This would suggest the use of:

Definitions:

Purely Competitive Seller

A seller in a market where there are many buyers and sellers, with no single entity able to control the market price.

Average Variable Cost

The total variable cost of production divided by the quantity of output produced; it decreases and then increases as output increases due to economies and diseconomies of scale.

Economic Profit

The extra income a business makes after accounting for all costs and expenditures, including opportunity costs.

Profit-Maximizing Output

Profit-maximizing output is the quantity of production at which a firm achieves the highest possible profit, where marginal cost equals marginal revenue.