What Is Probably the Greatest Disadvantage Associated with In-House Ad

question 92

Multiple Choice

What is probably the greatest disadvantage associated with in-house ad agencies?

• A) Loss of revenues
• B) Adherence to the organizational mission
• C) Reluctant acknowledgement by the mass media
• D) Loss of objectivity
• E) Staff-line relationships

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Definitions:

Excess Capacity

The situation in which a firm is producing at a lower scale of output than it has been designed for, typically because of declining demand.

Monopolistically Competitive Firms

Monopolistically competitive firms operate in a market structure where many firms sell products that are similar but not identical, allowing for some degree of market power and price setting.

Price Elasticity

An indicator of the responsiveness of the quantity demanded of a product or service to variations in its price.

Demand Curve

A visual chart that illustrates how the price of a product affects the amount of the product that consumers are prepared to purchase.