Which Theory Argues That People Are Motivated by Two Needs

question 21

Multiple Choice

Which theory argues that people are motivated by two needs, the need for assimilation and the need for differentiation?

• A) optimal distinctiveness theory
• B) the meta-contrast principle
• C) the subjective uncertainty reduction hypothesis
• D) positive distinctiveness theory

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Definitions:

Willingness to Pay

The maximum amount an individual is prepared to sacrifice to procure a good or avoid something undesirable.

Profit

The financial gain obtained when the revenue from business activities exceeds the expenses, costs, and taxes needed to sustain the activity.

Perfectly Price Discriminate

A pricing strategy where a seller charges the maximum possible price for each unit consumed that the buyer is willing to pay.

Output

Output refers to the total amount of goods and services produced by a company, industry, or economy within a given period.