Firms will try to signal superior quality of their goods by:
A) making sales information available to the public.
B) advertising.
C) issuing warranties or guarantees.
D) making sales information available to the public and advertising.

Question

Quizplus · Accepted Answer

Firms can signal superior quality of their goods by issuing warranties or guarantees. This is because warranties and guarantees provide consumers with a sense of security and confidence in the product, which can lead to increased sales.

Firms Will Try to Signal Superior Quality of Their Goods