According to the concave-downward function:
A)the incremental value of advertising increases.
B)creativity is the primary advertising function.
C)advertising is unlikely to be effective as a short-term solution.
D)as the amount of advertising increases, its incremental value decreases.
E)the effects of advertising do not diminish quickly.

Question

Quizplus · Accepted Answer

A concave-downward function implies that as the amount of advertising increases, its incremental value decreases. This means that there are diminishing returns to advertising, and at some point, the cost of advertising outweighs the benefits. Therefore, option D is the correct choice.

According to the Concave-Downward Function