【单选题】Following excercise (2), check the incentive compatibility condition for the H quality monopolist. Which of the following statement is TRUE?
A.
It is possible for the H quality monopolist to signal his quality with advertising spending, because he can be compensated by the high profit in the 2nd period, while L quality firm cannot.
B.
It is possible for the H quality monopolist to signal his quality with advertising spending, because he can gain a higher profit than he would have gained if he were seens as a L quality firm.
C.
It is not possible for the H quality monopolist to signal his quality with advertising spending, because the sacrefice is too large to be compensated by the 2nd period profit.
D.
It is not possible for the H quality monopolist to signal his quality with advertising spending, because his profit is too low compared to the perfect information case.