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QUESTION

A retailer wants to run an ad announcing that the new Patrick Rothfuss book will be available at the store next Saturday. There are two newspapers in...

A retailer wants to run an ad announcing that the new Patrick Rothfuss book will be available at the store next Saturday. There are two newspapers in the community in which the retailer operates. An ad in Newspaper A will cost $500, and an ad in Newspaper B will cost $375. Newspaper A has a circulation of 10,000, and Newspaper B has a circulation of 8,000. After calculating the cost per thousand (CPM), you know that:

Multiple Choice

  • Newspaper A is the more cost-effective buy.
  • both newspapers are equally cost-effective.
  • Newspaper B is the more cost-effective buy.
  • neither newspaper is cost-effective.
  • the cost per program rating for newspaper B is $50.
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