In general, the marginal benefit of advertising________ as more advertising is purchased because the gross profits from advertising _________ at a(n)________rate.

Question

Quizplus · Accepted Answer

The marginal benefit of advertising typically decreases as more advertising is purchased because the initial ads capture the most responsive audience. As advertising continues, it reaches audiences less responsive to the message, thus the gross profits from additional advertising increase at a decreasing rate, reflecting diminishing returns.

In General, the Marginal Benefit of Advertising________ as More Advertising