AllClean Knows That It Produces and Sells Very Effective Laundry

AllClean knows that it produces and sells very effective laundry detergent. NotQuiteWhite knows that it produces and sells ineffective laundry detergent. According to the signaling theory of advertising,

A) both AllClean and NotQuiteWhite have incentives to spend large amounts of money on advertising their products.
B) AllClean has an incentive to spend a large amount of money on advertising its detergent, but NotQuiteWhite does not.
C) NotQuiteWhite has an incentive to spend a large amount of money on advertising its detergent, but AllClean does not.
D) neither AllClean nor NotQuiteWhite has an incentive to spend a large amount of money on advertising their detergents.

Correct Answer:

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