Description
Option C: Signaling
Pick a commercial or advertisement you see. Answer the following questions in your essay:
- What product is being advertised?
- What message is the ad trying to convey?
- Would this message increase willingness to pay? Explain.
- Would this message decrease the price elasticity of demand? Explain.
- Would this message reduce adverse selection? Explain.
- Is this ad inefficient? Does it allow the firm to charge an excessive price and earn economic rent? ExplainOption C: SignalingNEED IN 4 HOURS NOT 13
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