Answer:
One way that sellers can credibly signal that they have a high-quality product is to **lower their marginal cost of production**.
Explanation:
Lowering the marginal cost of production can indicate efficiency and quality in manufacturing processes. When a seller can produce a product at a lower cost compared to competitors, it may suggest they have invested in superior technology, better materials, or more effective processes. This can indirectly signal to consumers that the product is of higher quality because the seller can afford to offer it at a competitive price while still maintaining a reasonable profit margin.
The other options mentioned—creating scarcity, spending a lot on advertising, and simply telling buyers more about the product—can be strategies used by sellers but may not always directly signal higher product quality. Scarcity tactics and advertising expenditures can create perceived value, but they do not inherently guarantee the quality of the product itself. Simply providing more information can inform buyers but does not necessarily prove quality without additional credibility or evidence.
