One Disadvantage of Using the Yellow Pages as an Advertising

question 267

Multiple Choice

One disadvantage of using the yellow pages as an advertising medium is

• A)there is no similar competition.
• B)the ads are perishable.
• C)few households with telephones have them.
• D)they have high delivery costs.
• E)they are difficult to keep up to date.

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Definitions:

MC

Marginal cost, the increase in total cost that arises from an extra unit of production, important for decision-making in production and pricing.

ATC

Average Total Cost; the total cost of production (fixed plus variable costs) divided by the total quantity of output produced, representing the average cost per unit of output.

AVC

Average Variable Cost, the cost a company incurs to produce one additional unit of product, excluding fixed costs.

Corrosion

The process of deterioration and consumption of a material through a chemical reaction with its environment, often leading to weakening or destruction of the material.