Advertisements That Appear to Convey No Information at All

question 307

Multiple Choice

Advertisements that appear to convey no information at all

• A)are usually associated with "infomercials."
• B)are useless to consumers but valuable to firms.
• C)are useless to firms but valuable to consumers for their entertainment quality alone.
• D)may convey information to consumers by providing them with a signal that firms are willing to spend significant amounts of money to advertise.

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Definitions:

Machines

Equipment or devices designed to perform specific tasks or functions, often used in manufacturing and production processes.

Short-Run Total Cost

The total of all costs, both fixed and variable, incurred in producing goods or services in the short term.

Production Function

An equation or graph that shows the maximum output that can be produced with a given set of inputs.

Labor

The human effort, either physical or mental, that is expended in the production of goods or services.