As a result of economies of scale,large advertisers:
A)are likely to enjoy more favorable advertising time and space than smaller advertisers
B)get lower advertising rates than smaller advertisers
C)accrue the advantages of advertising several products jointly
D)have declining average costs of production
E)benefit from all of the above

Question

Quizplus · Accepted Answer

Economies of scale refer to the cost advantages that a company can achieve by increasing its scale of production. In the context of advertising, large advertisers can enjoy more favorable advertising time and space because they can purchase larger volumes of ad space and negotiate better rates. Additionally, they can accrue the advantages of advertising several products jointly, reducing their overall marketing costs. This leads to declining average costs of production, which further benefits large advertisers. Therefore, all the options given in the question are correct, and the best answer is E.

As a Result of Economies of Scale,large Advertisers