If Signalling Is Applied to Advertising

question 2

Multiple Choice

If signalling is applied to advertising:

• A)a firm with a good product reaps a relatively large benefit from advertising
• 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)firms with poor products can copy this signal easily

---

Definitions:

Coordination

Coordination involves the organization and synchronization of activities, tasks, or efforts in a process to ensure smooth and efficient operation or workflow.

Centralization

The accumulation of decision-making power at the uppermost tiers of an organization's structure.

Purchasing

The process of obtaining goods or services, typically for business purposes.

Supply Chain Management

The supervision and management of materials, data, and monetary resources as they transition from the supplier, through the manufacturer and wholesaler phases, ultimately reaching the retailer and consumer.