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    Advertising is an important input into marketing most consumer products. Explain why the profit generated by an additional dollar of advertising will diminish with the total amount of advertising.

    © BrainMass Inc. brainmass.com October 9, 2019, 7:32 pm ad1c9bdddf
    https://brainmass.com/economics/economic-history-and-theory/profit-generated-additional-dollar-advertising-121266

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    This phenomenon happens due to the law of diminishing marginal utility. In advertising, the law of diminishing returns means that after sufficient saturation, each further dollar spent is less effective than the last.

    source: http://www.freewarehof.org/tv.html

    As an example, consider a very thirsty man that is offered a glass of ...

    Solution Summary

    Advertising is an important input into marketing most consumer products. Explain why the profit generated by an additional dollar of advertising will diminish with the total amount of advertising.

    $2.19