Keebleco knows that it produces and sells very tasty crackers.Nabiscer knows that it produces and sell dull crackers.According to the signaling theory of advertising,
A) both Keebleco and Nabiscer have incentives to spend large amounts of money on advertising their crackers.
B) Keebleco has an incentive to spend a large amount of money on advertising its crackers, but Nabiscer does not.
C) Nabiscer has an incentive to spend a large amount of money on advertising its crackers, but Keebleco does not.
D) neither Keebleco nor Nabiscer has an incentive to spend a large amount of money on advertising their crackers.
Correct Answer:
Verified
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