An increase in promotional budgets has:

a) Increasing returns up to about $2 million, then constant returns over time

b) Diminishing returns up to about $2 million, then increasing returns over time

c) Constant returns over time Increasing returns over time

d) Diminishing returns starting around $2 million

Question

Business

Ashley Marks

7 March, 19:20

An increase in promotional budgets has:

a) Increasing returns up to about $2 million, then constant returns over time

b) Diminishing returns up to about $2 million, then increasing returns over time

c) Constant returns over time Increasing returns over time

d) Diminishing returns starting around $2 million

+2

Answers (1)

Know the Answer?

Holly Griffin · Answer 1

d) Diminishing returns starting around $2 million

Explanation:

The promotional budget affects awareness, so increasing the budget brings attention the product on market leading to more costomers demanding it and altemately increaseign the diminishing returns.