For a signal to be meaningful, its cost must be:
A) the same for everyone.
B) zero.
C) lower for high-quality goods than for low-quality goods.
D) higher for high-quality goods than for low-quality goods.

Question

Quizplus · Accepted Answer

For a signal to be meaningful, it must be more costly for low-quality goods than for high-quality goods, ensuring that only high-quality goods can afford to send the signal.

For a Signal to Be Meaningful, Its Cost Must Be