When Is a Signal Informative

question 18

Multiple Choice

When is a signal informative?

• A)When it is lightly advertised by the firm
• B)When it is more profitable for the high quality firm to offer it
• C)When there are many firms advertising substitute products
• D)When it is offered by the low quality firm
• E)When the first firm that signals is the low quality firm

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Definitions:

Red Herring

A distraction or irrelevant topic introduced to divert attention away from the original issue.

Harried Executive

A business leader or manager who is extremely busy and under a lot of stress, often dealing with many challenges and responsibilities simultaneously.

Naturalist Intelligence

One of Howard Gardner's multiple intelligences, highlighting an individual's ability to interact with, understand, and classify the natural environment and living beings.

Transactional Analysis

A psychotherapeutic approach that examines interactions, or transactions, between individuals to understand and improve communication.