As a result of economies of scale, smaller advertisers:
A)are likely to enjoy more favorable advertising time and space than large advertisers.
B)have declining average costs of production.
C)get higher advertising rates than large advertisers.
D)can maintain advertising expenditure shares that are smaller than their market shares.
E)can accrue the advantages of advertising several products jointly.

Question

Quizplus · Accepted Answer

Smaller advertisers typically face higher advertising rates than large advertisers because they cannot leverage the same buying power or negotiate bulk discounts that larger advertisers can due to economies of scale.

As a Result of Economies of Scale, Smaller Advertisers