A Retailer with Three Retail Stores Located Within a 10-Mile

question 98

Multiple Choice

A retailer with three retail stores located within a 10-mile radius wishes to advertise in a county-based daily newspaper which covers a very large geographic area.The retailer should ________.

• A) use small ads to minimize waste
• B) use horizontal cooperative advertising to reduce waste
• C) use a regional edition to minimize waste
• D) seek to reduce the trading-area overlap to minimize waste with this medium

---

Definitions:

Average Cost

The cost per unit produced, computed by dividing the total of fixed and variable costs by the quantity of units produced, synonymous with average total cost.

Concentration Ratio

An indicator used to measure the degree of market concentration, often defined by the market share of the largest firms within an industry.

Cut-Throat Competitor

A company or individual that employs aggressive and ruthless tactics to maintain or increase its market position.

Colluder

An entity that engages in collusion, cooperating with others secretly or illegally to deceive or defraud.