The predominant response function for advertising is often concave, but when it is S-shaped, ________.

Question

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When the response function for advertising is S-shaped, there is a certain threshold level of advertising spending that is necessary to generate any sales impact. However, as advertising spending increases beyond that threshold, the sales impact eventually flattens out or even decreases. This is why some positive amount of advertising is necessary to generate any sales impact, but continued increases in advertising spending may not necessarily result in proportionally larger increases in sales.

The Predominant Response Function for Advertising Is Often Concave, but When