Why might a seller find it advantageous to signal the quality of a product? How are guarantees and warranties a form of market signaling? A. In a market where buyers are uncertain of a product's quality, a firm that signals the quality of its product can charge a higher price. Since guarantees and warranties are more costly for low-quality producers than high-quality producers, only high-quality producers will offer them. B. In a market where buyers are uncertain of a product's quality, the only clear signal of quality is to offer a guarantee or warranty. Since guarantees and warranties are less costly for low-quality producers than high-quality producers, only low-quality producers will offer them. C. In a market where buyers are uncertain of a product's quality, a firm that signals the quality of its product can charge a higher price. Since guarantees and warranties are less costly for low-quality producers than high-quality producers, only low-quality producers will offer them. D. In a market where buyers are uncertain of a product's quality, the only clear signal of quality is to offer a guarantee or warranty. Since guarantees and warranties are more costly for low-quality producers than high-quality producers, only high-quality producers will offer them.