5. The role of brand names and advertising Which of the following statements about expenditures on advertising is true? O If a firm knows its product is of low quality, it will be willing to spend large amounts of money on advertising. When a firm spends a large amount of money on advertising, advertising can be construed as a signal of quality. O When a firm spends a small amount of money on advertising, this signals that the quality of the good is high. Read the following example and determine whether it illustrates a common critique or defense of advertising. Mateo sees a commercial for Athena clothing company that depicts the wearers of the clothes out having a good time with friends. Although he doesn't particularly need new clothes, the commercial prompts him to buy an Athena t-shirt. critique defense This illustrates a common of advertising