If You Ordered a Commercial to Run on a Local

question 150

Multiple Choice

If you ordered a commercial to run on a local station that could reach 500,000 households for a cost of $1,000, what would your CPM be?

• A)$5.00
• B)$4.00
• C)$3.00
• D)$2.00
• E)$1.00

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Definitions:

Soft Drinks

Beverages that are non-alcoholic and typically carbonated, often containing sugar, flavorings, and acids.

Marginal Utility

The additional satisfaction or utility gained from consuming an additional unit of a good or service.

Utility Per Dollar

Represents the amount of satisfaction or pleasure received per unit of expenditure.

Good

A tangible or intangible product that can satisfy a need or desire, and is transferable from one person to another.