Which of the Following Is NOT a Reason an Advertising

question 90

Multiple Choice

Which of the following is NOT a reason an advertising agency might hire an outside supplier?

• A)Only suppliers are able to produce commercials.
• B)The agency lacks expertise in that area.
• C)The agency may be overloaded.
• D)The agency may want a fresh perspective.
• E)Suppliers provide specialized services.

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Definitions:

Wage Rate

The wage rate is the amount of compensation a worker receives per unit of time worked, often expressed per hour or per year.

Marginal Revenue Product

The extra revenue generated by employing one additional unit of a resource, such as labor or capital.

Diminishing Marginal Returns

A principle stating that after an optimal point, further increases in one input while holding others constant will result in smaller and smaller gains in output.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a variable input.