If a Firm Has Large Start-Up Costs and Nearly Zero

question 19

Multiple Choice

If a firm has large start-up costs and nearly zero marginal costs

• A)the firm can profit by focusing on total cost.
• B)the firm cannot profit competing on marginal cost.
• C)the firm can make money by simply charging a price.
• D)the firm can profit competing on marginal cost.

Calculate and interpret CPM (Cost Per Thousand) for various media options.

Understand the role of repetitive exposure in advertising effectiveness.

Recognize the importance of media metrics (ratings, share points) in advertising planning.

Learn about the challenges and considerations in global advertising campaigns.

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