Newspaper Readership Has Significantly Declined in Recent Years

question 89

Multiple Choice

Newspaper readership has significantly declined in recent years.Not only are traditional newspapers losing subscribers,they are also losing advertisers.To combat these trends,many newspaper publishers now offer online versions of their printed newspapers.This is MOST LIKELY an example of

• A) a reaction to a growing economy.
• B) a trend that will soon reverse itself because most consumers want a printed newspaper to read during breakfast, on the bus to work, etc.
• C) a technological environmental force that restricts the marketing opportunities of newspaper publishers.
• D) a social environmental force as a result of changing consumer preferences for information delivered online.
• E) a response to an increase in government regulation.

---

Definitions:

Monopolistically Competitive

Describes a market structure where many firms offer products that are similar but not perfect substitutes, leading to competitive pricing but with some degree of market power.

Excess Capacity

The amount of production capability that is not being used by a firm or within an economy.

Excess Capacity

Refers to the situation where a firm is producing at a lower scale of output than it has been designed for.

Monopolistically Competitive

A market structure characterized by many firms selling products that are similar but not identical, allowing for competitive pricing and differentiation.