Large Advertisers Usually Sell More of a Product or Service

question 13

Multiple Choice

Large advertisers usually sell more of a product or service, which means they may have lower production costs and can allocate more monies to advertising, so they can afford the costly but more efficient media like network television.Which of the following phenomena describes this effect?

• A)economies of scale
• B)economic censorship
• C)diversification
• D)Protestant ethic
• E)differentiation

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Definitions:

Lessee Firms

Companies that enter into lease agreements to rent assets or property rather than purchasing them outright.

Restrictive Covenants

Provisions in a contract or loan agreement that limit certain actions of the borrower to protect the interest of the lender.

Leasing

A contractual arrangement where one party allows another to use an asset for a specified time in return for periodic payments.

Buying

The action of purchasing goods, services, or financial assets.