Which of the Following Statements Is True of Online Behavioral

question 62

Multiple Choice

Which of the following statements is true of online behavioral advertising (OBA) ?

• A)OBA permits only those advertisements that provide detailed information about an advertiser's products and services.
• B)Companies engaged in OBA are monitored by the Federal Trade Commission (FTC).
• C)OBA is based on the seven Self-Regulatory Principles for Electronic Retailing.
• D)OBA uses information collected across multiple unaffiliated websites to predict a user's preferences.
• E)OBA is regulated by the Electronic Retailing Self-Regulation Program (ERSP).

---

Definitions:

Marginal Cost

The variation in the overall expense that occurs as a result of increasing the production quantity by one unit.

Consumer Surplus

The benefit consumers receive when they pay less for a product than what they were prepared to pay, measured by the area beneath the demand curve and above the price.

Monopolist

An entity, often a single firm, that holds exclusive control over the supply of a particular good or service, setting prices without competition.

Marginal Cost

The increase in cost that arises from producing one additional unit of a good or service.