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Which of the following statements about expenditures on advertising is true? a

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Which of the following statements about expenditures on advertising is true?

a. When a firm spends a small amount of money on advertising, this signals that the quality of the good is high.

b. If firm knows its product is of low quality, it will be willing to spend large amounts of money on advertising.

c. When a firm spends a large amount of money on advertising, advertising can be constructed as a signal of quality.