Putting Ads on Top of Taxicabs in New York City

question 49

Multiple Choice

Putting ads on top of taxicabs in New York City that change as the cabs travel around the city is an example of __________.

• A)viral marketing
• B)permission advertising
• C)geographical advertising
• D)location-based advertising
• E)direct marketing

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Definitions:

Marginal Cost

Marginal cost is the increase in total production cost that arises from producing one additional unit of a product or service.

Subsidy

A financial contribution granted by the government or a public body to help an industry or business keep the price of a commodity or service low.

Marginal Costs

The increase in cost resulting from the manufacture of one additional unit of a good or service.

Decreasing Costs

Situations in which costs diminish as the level of production or scale of operations increases.