If Signalling Is Applied to Advertising

question 95

Multiple Choice

If signalling is applied to advertising:

• A)not all firms heve the same incentive to atvertise
• B)firms ignore 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)a Firm with a good product reaps a relatively small benefit from atvertising

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Definitions:

Diffusion

Movement of ions from an area of higher concentration to an area of lower concentration through random motion.

Neurotransmitter Deactivation

The process by which neurotransmitters are inactivated in the synaptic cleft, stopping their effects on post-synaptic neurons.

Synaptic Cleft

The gap between two neurons at a synapse, through which neurotransmitters are released and travel to bind with receptors on the postsynaptic neuron.

Voltage-activated Calcium Ion Channels

Ion channels in cell membranes that open in response to changes in electrical potential, allowing calcium ions to enter the cell.