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.