Question

A company has learned that the relationship between its advertising and sales shows diminishing marginal returns. That​ is, as it saturates consumers with​ ads, the benefits of increased advertising diminish. The company should expect to find linear association between its advertising and sales.

Answer 1

A company has learned that the relationship between its advertising and sales shows diminishing marginal returns. That​ is, as it saturates consumers with​ ads, the benefits of increased advertising diminish. The company should expect to find a linear association between its advertising and sales - This statement is false

Explanation:

According to the scenario given for the company, it was said that the marginal return diminished after a saturation point, therefore, the company should rather expect a non-linear pattern and not a linear pattern.

Therefore, the statement expressed in the question is false.