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Which of the following statements about expenditures on advertising is true ? A. If a firm knows its product is of low quality, it will

Which of the following statements about expenditures on advertising istrue?

A. If a firm knows its product is of low quality, it will be willing to spend large amounts of money on advertising.

B. When a firm spends a small amount of money on advertising, this signals that the quality of the good is high.

C. When a firm spends a large amount of money on advertising, advertising can be construed as a signal of quality.

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