Most businesses advertise their products and services.Some business use SPAM emails to advertise because the cost of a mass e-mail is close to zero.Other business spend millions of dollars to advertise in a 30-second spot during the super bowl.Having observed this real world data,economists argue that the amount of money that a business spends on advertising is a proxy for a good or service's

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Economists argue that businesses that spend more money on advertising are generally promoting products or services of higher quality, as they are confident enough to invest more in advertising to gain consumer attention and trust. Additionally, higher quality products and services generally command a higher price, allowing businesses to justify spending more on advertising.

Most Businesses Advertise Their Products and Services