What condition must a signal meet to effectively convey private information about a product or service?

Show Answers

It should be advertised on popular television channelsThe signal must incur no expense for the senderThe signal has to be expensive for the sender, yet less burdensome for those offering higher-quality goodsIt needs to be used only for low-cost items

Explanation

For a signal to successfully communicate private information, it must involve a cost to the sender that is lower for those with higher-quality products, ensuring the signal is credible and differentiates quality effectively.