A Retailer Wants to Run an Ad Announcing That the New

question 90

Multiple Choice

A retailer wants to run an ad announcing that the new Harry Potter book will be available at the store next Saturday.There are two newspapers in the community in which the retailer operates.An ad in Newspaper A will cost $500,and an ad in Newspaper B will cost $375.Newspaper A has a circulation of 10,000,and Newspaper B has a circulation of 8,000.After calculating the CPM,you know:

• A)Newspaper A is the more cost-effective buy
• B)both newspapers are equally cost-effective
• C)Newspaper B is the more cost-effective buy
• D)neither newspaper is cost-effective For the most cost-effective buy: ($500/10,000)x 1,000= $50.For both newspapers an equally cost-effective buy: ($375)/8,000)x 1,000 = $46.875

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Definitions:

American Bar Association

A large voluntary association of attorneys and law students in the United States which aims to improve the legal profession, set academic standards for law schools, and formulate ethical codes for the legal profession.

Interstate Commerce

Economic activity that involves trade, traffic, or transportation across state lines, falling under the regulatory power of the federal government.

Foreign Corporation

A company that is incorporated in one country but conducts business operations in another country where it is considered foreign.

International Shoe

A foundational legal case in personal jurisdiction law within the United States, establishing the "minimum contacts" standard.