Which of the following describes the general
trend of proportion of ad spending to sales?
As ad spending increases, sales
increase
As ad spending increases, sales
decrease
As ad spending decreases, sales
increase
There is no relationship between ad
spending and sales
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Answer :

Final answer:

The general trend is that as ad spending increases, sales increase. The effectiveness of advertising campaigns depends on consumers' approval and resulting sales of advertised products.


Explanation:

The general trend of proportion of ad spending to sales:

  1. As ad spending increases, sales increase.
  2. There is a positive relationship between the degree of concentration of market power and the fraction of total costs devoted to advertising.
  3. Consumers' approval and resulting sales of advertised products determine the effectiveness of advertising campaigns.

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