If Participants Behave in a Research Study the Way They

question 40

True/False

If participants behave in a research study the way they would in their everyday lives, then the study has good external validity.

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Definitions:

Variable Cost

Expenses that vary directly with the level of production or sales volume, such as materials, labor, and utility costs.

Contribution Margin

The amount remaining from sales revenue after variable expenses have been deducted, indicating how much contributes to fixed expenses and profit.

Selling Price

The amount for which a product is sold, determined by considering costs, market demand, competition, and other factors.

Relevant Range

The range of activity within which assumptions about variable and fixed cost behaviors are valid for management decisions.