how-does-advertising-act-as-a-signal-of-product-quality-in-monopolistic-competit

Question

How does advertising act as a signal of product quality in monopolistic competition?

Accepted Answer

By indicating that the firm is willing to invest in promoting a quality product.

Answer

By reducing the need for consumer reviews.

Answer

By guaranteeing the lowest price in the market.

Answer

By ensuring that the product is available in all stores.