A Firm Should Increase Advertising If the Net Marginal Revenue

question 37

Multiple Choice

A firm should increase advertising if the net marginal revenue derived is:

• A) equal to the marginal cost of advertising.
• B) greater than the marginal cost of advertising.
• C) greater than zero.
• D) less than the marginal cost of advertising.

---

Definitions:

Research Assistant

An individual who provides administrative or technical support to professionals conducting scientific studies, often helping with data collection and analysis.

Internal Validity

The extent to which a study can rule out or make unlikely alternative explanations of the results, indicating that the causal relationship being tested is trustworthy.

Construct Validity

The degree to which a test or instrument accurately measures the theoretical construct it is intended to measure.

Low Construct Validity

When a test or tool does not accurately measure the theoretical concept it is intended to measure.