It is often difficult for a customer to know the quality of a 3-D television.If a television manufacturer advertises its 3-D televisions then:
A) this i5 a costles5 action that fals to 51gnal the 3-D televion is a good product
B) this is a costless action that succeeds in simanling that the 3-D televisidn is a good prochuct
C) this is a costly action that succeeds in signalling that the 3 -D television is a good product
D) this is a costly action that fails to sipnal the 3 -D television is a pood product

Question

It is often difficult for a customer to know the quality of a 3-D television.If a television manufacturer advertises its 3-D televisions then:
A) this i5 a costles5 action that fals to 51gnal the 3-D televion is a good product
B) this is a costless action that succeeds in simanling that the 3-D televisidn is a good prochuct 
C) this is a costly action that succeeds in signalling that the 3 -D television is a good product 
D) this is a costly action that fails to sipnal the 3 -D television is a pood product

Quizplus · Accepted Answer

If a television manufacturer advertises its 3-D televisions, it is a costly action as advertisements require money. If they are willing to invest in advertising, it suggests that they have faith in their product and that it is of good quality. Therefore, advertising succeeds in signaling that the 3-D television is a good product.

It Is Often Difficult for a Customer to Know the Quality