Adibok Knows That It Produces and Sells High-Quality Athletic Shoes

question 205

Multiple Choice

Adibok knows that it produces and sells high-quality athletic shoes. Wurkout knows that it produces and sells low-quality athletic shoes. According to the signaling theory of advertising,

• A)both Adibok and Wurkout have incentives to spend large amounts of money on advertising for their athletic shoes.
• B)Adibok has an incentive to spend a large amount of money on advertising for its athletic shoes, but Wurkout does not.
• C)Wurkout has an incentive to spend a large amount of money on advertising for its athletic shoes, but Adibok does not.
• D)neither Adibok nor Wurkout has an incentive to spend a large amount of money on advertising for their athletic shoes.

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Definitions:

David Walker

An African American abolitionist who published an appeal in 1829 calling for the end of slavery and equal rights for Black people.

North Carolina

A U.S. state located in the southeastern region, known for its diverse landscapes, ranging from Atlantic Ocean beaches to the Appalachian Mountains.

Coloured Citizens

Term historically used, now considered dated and offensive, to refer to people of non-white racial backgrounds, particularly African Americans.

William Lloyd Garrison

A prominent American abolitionist, journalist, and social reformer known for his strong advocacy for the immediate emancipation of all slaves.