If We Can Come Up with a Scenario in Which

question 20

Multiple Choice

If we can come up with a scenario in which all the premises are true but the conclusion is false, then we know that __________.

• A) the premises are in fact false
• B) the conclusion is in fact false
• C) the premises do not imply the conclusion
• D) the conclusion does not imply its premises

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Definitions:

Fixed Cost

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.

Variable Cost

Costs that change in proportion to the good or service that a business produces.

Profit

The financial gain obtained when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Market Price

The current price at which a good or service can be bought or sold in a market, determined by the forces of supply and demand.