If Signalling Is Applied to Advertising

question 83

Multiple Choice

If signalling is applied to advertising:

• A)a firm with a good product reaps a relatively small benefit from advertising
• B)firms recognise the possibility of repeated customers
• C)it is irrational for a firm with a good product to pay for the cost of the signal
• D)all firms have the same incentive to advertise

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Definitions:

Probate

A legal process through which a deceased person's will is validated, and their assets are distributed according to the will or state law if there's no will.

Intestate

The condition of having died without having made a valid will, leading to the distribution of assets according to state laws.

Real Property

Land and anything permanently attached to it, such as buildings, trees, and minerals, distinguished from personal property.

Domicile

A place where a person lives or has his home; in a strict legal sense, the place where he has his true, fixed, permanent home and principal establishment, and to which place he has, whenever he is absent, the intention of returning.