For a signal to be meaningful, the cost of obtaining it must be:
A) the same for everyone.
B) zero.
C) lower for high-quality goods than for low-quality goods.
D) higher for high-quality goods than for low-quality goods.

Question

Quizplus · Accepted Answer

The cost of obtaining a signal must be higher for high-quality goods than for low-quality goods because the higher the quality of the good, the more it will cost to produce. This is because high-quality goods require more resources and labor to produce than low-quality goods.

For a Signal to Be Meaningful, the Cost of Obtaining