Which of the Following Statements About Network Advertising Is True

question 70

Multiple Choice

Which of the following statements about network advertising is true?

• A)Using network advertising significantly complicates the purchase of television media time for national advertisers.
• B)Network advertising is cheaper and more selective than local advertising.
• C)The high cost of network time can be a drawback to advertisers with limited media budgets.
• D)National advertisers have to negotiate with both the network and local affiliates when they want to make a media buy.
• E)Network advertising is less effective than spot advertising for mass consumption products.

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Definitions:

Factor Market

A marketplace for the services of a factor of production, such as labor, capital, or land, where these are bought and sold.

Marginal Productivity

Refers to the increase in output that arises from an additional unit of input, assuming all other factors of production remain constant.

Marginal Productivity Theory

An economic theory suggesting that payment to factors of production equates to their marginal contribution to the output.

Value Added

The increase in the value of a product or service as a result of a particular process, typically measured as the difference between the cost of inputs and the price it's sold for.