If Signalling Is Applied to Advertising

question 112

Multiple Choice

If signalling is applied to advertising:

• A)a firm with a good product reaps a relatively small benefit from advertising
• B)firms ignore the possibility of repeated customers
• C)it is rational 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:

Humor

A quality of being amusing or comic, especially as expressed in literature or speech.

Informative Messages

Communications designed to convey knowledge and information to a receiver without an expectation of feedback.

Risks

Potential events or situations that may lead to loss or an undesired outcome.

Email Disadvantage

Refers to the potential negatives of using email, such as miscommunication, information overload, or lack of personal touch.