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For a Signal to Convey Credible Information About the Quality

Question 101

Multiple Choice

For a signal to convey credible information about the quality of a good, the signal must:


A) not be costly to send.
B) be equally costly to send, regardless of the good's quality.
C) be less costly to send if the good is low quality than high quality.
D) be less costly to send if the good is high quality than low quality.

Correct Answer:

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