Q
Which of the following must be true about a signal that is used to reveal private information in order for the signal to be effective ?
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A
A. It must be βas seen on tvβ
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B
B. It must be free to the signaling party
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C
C. It must be costly to the signaling party but less costly to the party with higher-quality product
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D
D. It must be applied to an inexpensive product
Correct Answer:
C. C. It must be costly to the signaling party but less costly to the party with higher-quality product
