Which Statement Is True

question 115

Multiple Choice

Which statement is true?

• A)The monopolistic competitor always makes a profit in the short run.
• B)The monopolistic competitor operates at peak efficiency.
• C)Product differentiation takes place in the minds of the buyers.
• D)None of these statements are true.

---

Definitions:

Theory of Emotion

The theory of emotion refers to various theories that attempt to explain the biochemical and neurological processes and the psychological experience associated with feelings and emotions.

Two-factor Theory

A concept in psychology proposed by Schachter and Singer, suggesting that emotion arises from physiological arousal followed by a cognitive interpretation of that arousal.

Attracted

Feeling drawn or held towards something or someone, typically due to qualities found appealing.

Drug

Any substance that causes a change in an organism's physiology or psychology when consumed, often used in the context of medication or recreational substances.