Social Comparison Theory Proposes That Consumers Cognitively Compare Their Own

question 23

True/False

Social comparison theory proposes that consumers cognitively compare their own level of inputs and outcomes to those of another party in an exchange.

---

Definitions:

Long Run

The Long Run is a period in economics during which all factors of production and costs are variable, allowing for adjustment to changing market conditions.

Fixed Amount

A specific, unchanging quantity of something.

Diminishing Returns

An economic principle that states as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot increase proportionally.

Negative Returns

A situation in which additional investment or effort results in a decrease in output or performance, contrary to typical expectations for growth or improvement.