The S-Shaped Response Function Implies That

question 32

Multiple Choice

The S-shaped response function implies that:

• A)initial advertising expenditures will have little impact on sales.
• B)initial advertising expenditures will have major impact on sales.
• C)sales effects will follow the microeconomic law of diminishing returns.
• D)small advertising budgets have a high impact on sales when word of mouth is the only promotional tool used.
• E)small advertising budgets have a high impact on sales when public relations is the only promotional tool used.

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Definitions:

Fraud

The wrongful or criminal deception intended to result in financial or personal gain.

Per Stirpes

A method of distributing an intestate’s estate so that each heir in a certain class (such as grandchildren) takes the share to which her or his deceased ancestor (such as a mother or father) would have been entitled.

Distribute

To allocate or spread out resources or goods across different recipients or areas.

Natural Heirs

Individuals who are legally entitled to inherit the estate of a deceased person based on their relationship by blood or adoption.