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Business, 22.05.2020 18:59 colin5514

5. The role of brand names and advertising. Which of the following statements about expenditures on advertising is true?

A. When a firm spends a large amount of money on advertising, advertising can be construed as a signal of quality.
B. When a firm spends a small amount of money on advertising, this signals that the quality of the good is high.
C. If a firm knows its product is of low quality, it will be willing to spend large amounts of money on advertising.

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