The S-shaped response function implies that:
A) initial advertising expenditures will have little impact on sales
B) sales effects will follow the microeconomic law of diminishing returns
C) sales will immediately decrease then increase
D) sales will immediately increase then decrease

Question

Quizplus · Accepted Answer

The S-shaped response function suggests that at low levels of advertising expenditure, there is little impact on sales. As spending increases, sales begin to rise more significantly, following an S-shaped curve.

The S-Shaped Response Function Implies That