Which statement is true?

Question

Quizplus · Accepted Answer

The statement that is true is C. Product differentiation is a process where firms try to create a unique image and identity for their products to distinguish them from competitors. This differentiation takes place in the minds of the buyers, who perceive the products as different and are willing to pay a premium price for them. The other three statements are not true. The monopolistic competitor may not make a profit in the short run, operates at less than peak efficiency, and the buyers' perception is based on product differentiation.

Which Statement Is True