Large advertisers usually sell more of a product or service, which means they may have lower production costs and can allocate more monies to advertising, so they can afford the costly but more efficient media like network television. Which of the following phenomena describes this effect?

Question

Quizplus · Accepted Answer

This effect is known as economies of scale, where larger production leads to lower unit costs and thus more resources available for advertising.

Large Advertisers Usually Sell More of a Product or Service