According to One Theory, Advertising Sends a Signal to Consumers

Multiple Choice

According to one theory, advertising sends a signal to consumers about the quality of the product being offered. An implication of this theory is that

A) the actual quality of the product is irrelevant.
B) the existence of an expensive advertisement is more important than the content of the advertisement.
C) advertising is not in the best interest of society.
D) it is irrational for firms to pay famous people large amounts of money to appear in their advertisements.