Attempts |:l:l:| Keep the Highest / 2 6 . The role of brand names and advertising Which of the following statements about expenditures on advertising is true? Q When a firm spends a small amount of money on advertising, this signals that the quality of the good is high. Q If a firm knows its product is of low quality, it will be willing to spend large amounts of money on advertising. 0 When a firm spends a large amount of money on advertising, advertising can be construed as a signal of quality. Read the following example and determine whether it illustrates a common critique or defense of advertising. Noah 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 p- - eed new clothes, the commercial prompts him to buy an Athena tshirt. defense This illustrates a common V of advertising