Which of the Following Comparisons of Primary In-Home Readers of a Magazine

question 32

Multiple Choice

Which of the following comparisons of primary in-home readers of a magazine and pass-along readers is true?

• A) Advertisers generally attach greater value to primary in-home readers.
• B) Advertisers generally attach greater value to pass-along readers.
• C) Pass-along readers should be totally discounted in evaluating magazine readership.
• D) Pass-along readers generally spend more time with a magazine and pick it up more often than do primary readers.

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Definitions:

Economic Profits

The excess of total revenue over total cost, including both explicit and implicit costs, reflecting the true profitability of a business.

Marginal-cost Pricing

A pricing strategy where the price of a product is set equal to the additional cost of producing one extra unit of output.

Productive Efficiency

A state where an economy or firm produces goods or services at the lowest possible cost, using resources in the best possible manner without waste.

Managerial Incentives

Incentives designed to motivate managers to make decisions that align with the owner's or shareholders' interests.