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A Firm with a Very Good Product

Question 143

Multiple Choice

A firm with a very good product


A) has a higher cost of signaling with advertising than does a firm with an inferior product.
B) has more to gain by signaling with advertising than does a firm with an inferior product.
C) does not need to signal with advertising because the product's quality speaks for itself.
D) will signal with advertising effectively if signaling is free.

Correct Answer:

verifed

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