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.

Monopolistic Competitor

A monopolistic competitor refers to a market structure in which many companies sell products that are similar but not identical, allowing for significant differentiation and some degree of market power.

Product Differentiation

the process of distinguishing a product or service from others, to make it more attractive to a particular target market.

Peak Efficiency

The highest level of performance or productivity that a system, device, or organization can achieve under ideal circumstances.