A Major Argument Put Forth by Defenders of the Commission

question 7

Multiple Choice

A major argument put forth by defenders of the commission system is that a commission:

• A)keeps the agencies from placing advertising in expensive media.
• B)ties agency compensation to the inflation in media costs.
• C)is very complex to administer.
• D)is simple and keeps the emphasis in agency compensation on non-price factors.
• E)encourages agencies to use noncommissionable media such as direct mail.

---

Definitions:

Marginal Product Curve

A graphical representation that shows how the addition of one more unit of a resource to production affects the output of a product.

Total Product Curve

A graphical representation showing how the total quantity of output varies with changes in the quantity of a single input while other inputs are held constant.

Marginal Cost Curve

A graphical representation showing how the cost of producing one additional unit of a good varies as production increases.

Average Product

The output per unit of input, such as the quantity of goods produced per worker, used to measure productivity.