Which of the Following Statements Is True of the Cost

question 85

Multiple Choice

Which of the following statements is true of the cost per thousand (CPM) method of measuring efficiency in the advertising industry?

• A)It refers to the dollar cost of reaching 1,000 prospects.
• B)Its chief disadvantage relates to its complexity.
• C)It does not allow for a common base of comparison between differing media types.
• D)It strongly discounts the positive effects theory.

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Definitions:

Tariff

A tax imposed on imported goods and services, designed to increase the price and reduce the demand for foreign products.

Imports

Goods or services brought into one country from another for sale or use.

Production Quota

A limit set by authorities or organizations on the amount of a product that can be produced, often used to control supply and stabilize or increase prices.

Producer Surplus

The gap between the price at which producers agree to sell a good or service and the price they end up receiving.