A Firm Cannot Devote Its Total Promotional Efforts to Publicity

question 86

Multiple Choice

A firm cannot devote its total promotional efforts to publicity since _____.

• A)the sponsor is not identified
• B)it has less credibility than advertising
• C)public relations staff costs are high
• D)there is no control over message,timing,placement,and degree of coverage

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Definitions:

Average Total Costs

The total cost of production divided by the number of units produced, representing the per-unit production cost.

Marginal Costs

The charge for generating one more unit of a product or service.

Average Fixed Costs

The total fixed costs of production divided by the quantity of output produced, indicating how fixed costs change with different levels of production.

Marginal Costs

The increase in total cost that arises from an extra unit of production.