The S-shaped response function implies that:
A) initial advertising expenditures will have little impact on sales
B) sales will immediately decrease then increase
C) sales effects will follow the microeconomic law of diminishing returns
D) sales will immediately increase then decrease

Question

Quizplus · Accepted Answer

The S-shaped response function suggests that initial advertising expenditures have little impact on sales until a certain threshold is reached, after which sales begin to increase significantly.

The S-Shaped Response Function Implies That