As a result of _____, large advertisers can maintain advertising expenditure shares that are smaller than their market shares because they get lower advertising rates and accrue the advantages of advertising several products jointly.
A)economies of scale
B)differential advertising advantages
C)competitive parity
D)a concave-downward response
E)multiple advertising channels

Question

Quizplus · Accepted Answer

Economies of scale allow larger advertisers to negotiate lower advertising rates due to their ability to purchase a larger amount of advertising space or time. This enables them to maintain advertising expenditure shares that are smaller than their market shares while still achieving a significant advertising impact. Additionally, by advertising several products jointly, they can benefit from cost savings and cross-promotion opportunities.

As a Result of _____, Large Advertisers Can Maintain Advertising