-Figure 7-3 Above Shows the Top Ten Prime-Time Broadcast TV

question 85

Multiple Choice

-Figure 7-3 above shows the top ten prime-time broadcast TV shows during a recent May sweeps week. If an advertiser such as Apple wanted to buy time on one of these TV shows, which of the following statements would be most accurate?

• A)People who like reality TV are more likely to watch ABC than FOX.
• B)Apple should advertise on NCIS: Los Angeles since the rate CBS would charge is the same as the rate FOX would charge for American Idol.
• C)Apple would advertise on Dancing with the Stars - Results and NOT Dancing with the Stars because the proportion of the TV households actually tuned into the former is greater than the latter.
• D)Of all households with TVs in the U.S., fewer households watched American Idol - Wednesday than American Idol - Thursday.
• E)The cost of an advertisement shown on American Idol - Thursday would cost more than one aired during Dancing with the Stars - Results.

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Definitions:

Transfer Payments

Payments made by the government to individuals, without requiring any service or goods in return, such as social security or unemployment benefits.

Imperfect Knowledge

A situation where all parties in an economic transaction do not possess full or equal information, leading to market failures or inefficiencies.

Return Investors

The profit or loss generated on an investment over a certain period of time, expressed as a percentage of the investment's initial cost.

Economic Profit

The difference between a firm's total revenue and its total economic costs, including both explicit and implicit costs.