According to the _____ model, the effects of advertising budgets follow the microeconomics law of diminishing returns.
A)concave-upward
B)S-shaped demand
C)S-shaped response
D)marginal utility
E)concave-downward

Question

Quizplus · Accepted Answer

The concave-downward model shows that as advertising spending increases, the returns on investment initially increase at a decreasing rate, but eventually reach a point of saturation where further spending results in diminishing returns. This is in line with the microeconomics law of diminishing returns, which states that increasing one input while holding others constant will ultimately lead to lower marginal returns.

According to the _____ Model, the Effects of Advertising Budgets