The Maker of Frank's RedHot Sauce Spent $25,000 to Create

question 20

Multiple Choice

The maker of Frank's RedHot sauce spent $25,000 to create an ad targeted to consumers in the southern Ontario market.Because it created the ad itself and used no ad agency,what did Frank's RedHot sauce engage in?

• A) receiving
• B) encoding
• C) decoding
• D) creating noise

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Definitions:

Economically Efficient

Refers to a situation where resources are allocated in a way that maximizes the net benefit to society.

Revenue

The income generated from normal business operations and includes discounts and deductions for returned merchandise.

Consumer Sovereignty

The principle that the consumer's preferences determine the production of goods and services within an economy.

Market System

An economic system where decisions regarding investment, production, and distribution are guided by the forces of supply and demand and prices mediate transactions.