Firms that spend a large amount of money on advertising a particular product are likely to be providing consumers with:

Question

Quizplus · Accepted Answer

Firms that spend a lot on advertising are likely trying to signal high quality to consumers. This is because advertising can be costly, so companies that are willing to invest a lot in promoting a product are likely confident in its quality and want to communicate that to potential customers.

Firms That Spend a Large Amount of Money on Advertising