"Cheap talk" is considered cheap because
A)communications via phone or email these days has a cost that is close to zero.
B)a firm can say anything, but may actually do something different.
C)the cost of talking is far outweighed by the gains to be made in coordinating efforts.
D)firms avoid the costs of hiring lawyers.

Question

Quizplus · Accepted Answer

Cheap talk is considered cheap because it is a form of communication that does not require any commitment or cost on the part of the speaker. Therefore, a firm can say anything without necessarily following through with actions, making it unreliable.

"Cheap Talk" Is Considered Cheap Because