An Advertising Executive Who Works for Hughes & O'Reilly Agency

question 60

Multiple Choice

An advertising executive who works for Hughes & O'Reilly Agency has just been assigned to a new Schlotsky's restaurant account.One of the first things he may want to do is:

• A)sit down and begin writing copy for sample ads
• B)spend some time visiting similar restaurants,eating their food and talking to consumers about some of their specific likes and dislikes of Schlotsky's and their competitors
• C)try to come up with some big ideas that can be the basis of a creative ad campaign
• D)come up with alternative positioning concepts for Schlotsky's
• E)any of the above

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Definitions:

Excludable

A characteristic of a good or service that allows its owner to prevent others from using it without permission.

Nonrival

A characteristic of a good whereby one person's consumption does not diminish the availability of the good for consumption by others.

Marginal Social Cost

The additional cost incurred by society as a whole due to the production of one extra unit of a good or service.

Socially Optimal

A state or outcome in which the total benefits to society are maximized, taking into account all costs and benefits, both private and external.