A sales-response function curve shows when diminishing returns on advertising expenditures are present.

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A sales-response function curve shows how sales respond to changes in advertising expenditures. It typically shows that at some point, increasing advertising expenditures will result in diminishing returns, meaning that the additional sales generated by each additional advertising dollar spent start to decrease. Therefore, a sales-response function curve does show when diminishing returns on advertising expenditures are present.

A Sales-Response Function Curve Shows When Diminishing Returns on Advertising