A Signalling Equilibrium Occurs Where

Multiple Choice

A signalling equilibrium occurs where:

A) the cost of obtaining the signal is the same for both high and low risk drivers.
B) the cost of obtaining the signal is low for high risk drivers and high for low risk drivers.
C) the cost of obtaining the signal is high for high risk drivers and low for low risk drivers.
D) the cost of the signal is not too high for either type of driver.