If Signalling Is Applied to Advertising

question 35

Multiple Choice

If signalling is applied to advertising:

• A)not all firms have the same incentive to advertise
• 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 advertising

---

Definitions:

Brain Cells

Cells located in the brain, including neurons and glial cells, responsible for processing and transmitting information.

Digestive Systems

A complex series of organs and glands responsible for the ingestion, breakdown, absorption, and processing of food and nutrients.

Environmental Factors

External elements that can influence the development, behavior, and survival of organisms, including climate, habitat, and pollution.

Embryonic Stage

The early developmental phase of an organism following fertilization, characterized by rapid cell division and differentiation.