--%>
Assignment Help - homework help

Different types of determinants of advertisement elasticity

What are the different types of determinants of advertisement elasticity?

E

Expert

Verified

There are different determinants of advertisement elasticity are as given here:

1. Kind of commodity: elasticity will be higher for new product, luxury and growing product.

2. Market share: Well-built the market share of the firm lower will be promotional elasticity.

3. Rival’s reaction: when the rivals react to rise in firm’s advertisement by raising their own advertisement expenditure, this will decrease the advertisement elasticity of the firm.

4. State of economy: when economic conditions are good, the consumers are more probably to respond to the advertisement of the firm.

   Related Questions in Managerial Economics

  • Q : Extra revenue from the extra output

    Extra revenue by the extra output produced from an additional unit of a resource is the marginal resource: (1) profit to the firm. (2) revenue product. (3) iso-utility curve. (4) resource cost. (5) productive value.

    Q : Cost concept of business operation and

    Categories the cost concept of business operation and decision making?

    		•
  • Q : Supply of Labor The firm in this

    The firm in this illustrated graph is clearly: (1) price taker in the sale of its output because of the shapes of the VMP and MRP curves. (2) price taker in the purchase of labor when this can hire as several workers as this chooses at roughly of $13 per hour. (3) mon

    		•
  • Q : Requirement of Screening Boris operates

    Boris operates a local landscaping company, needs each potential employee to lift a 200 pound tree before being hired whole-time. This obligation is an example of: (1) signaling. (2) discrimination. (3) screening. (4) derived demand. (5) automation.

    Q : Formulate the Cross Elasticity of demand

    Formulate the Cross Elasticity of demand?

    		•
  • Q : Marginal Product of Labor in Firm If

    If this firm maximizes profit, this will be producing under circumstances of: (1) increasing returns to labor. (2) economies of scale. (3) diminishing returns to labor. (4) constant returns to labor. (5) adverse selection and moral hazard.

    Q : Human Capital and the Demand for Labor

    Investment in human capital is not essentially involved while: (w) people acquire and sharpen new productive skills. (x) a person attends college and learns engineering. (y) a person jogs to stay in shape. (z) the marginal productivity of labor increa

    		•
  • Q : Wage Flexibility An assumption

    An assumption regarding purely competitive labor markets to make sure market clearing is which: (w) firms maximize profit. (x) individuals and households maximize utility. (y) wages and prices are flexible. (z) trade unions engage in collective bargai

    		•
  • Q : What is Constant Returns to scale What

    What is Constant Returns to scale?

    		•
  • Q : Illustrates the real concept briefly

    Illustrates the real concept briefly?

    		•