Question

Even advertising that appears to contain little information about the product may be useful because it provides a signal about the quality of the product

A. True.
B. False.

Answer 1

True. Advertising that seems to have minimal product information can still be helpful as it signals the product's quality.

Step-by-step explanation:

True. Even advertising that appears to contain little information about the product can be useful because it provides a signal about the quality of the product. A buyer may assume that a higher-priced product must be of higher quality, even if they are not an expert in that particular field. This is because price can act as a signal of quality in the absence of complete information.