A Distinction Between Theories and Hypotheses Is That

question 197

Multiple Choice

A distinction between theories and hypotheses is that:

• A) hypotheses tend to be broader and more externally valid than theories.
• B) theories tend to be externally valid while hypotheses tend to be internally valid.
• C) theories use operational definitions while hypotheses do not.
• D) theories tend to be broader than hypotheses.

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Definitions:

Optimal Output Rule

The principle that profit is maximized by producing the quantity of output at which the marginal revenue of the last unit produced is equal to its marginal cost.

Marginal Revenue

The additional income earned by a company from selling one more unit of a good or service, reflecting the benefit of increased production.

Marginal Cost

The boost in expense for crafting one more unit of a product or service.

Profits

The financial gain realized when the revenue earned from economic activities exceeds the expenses, costs, and taxes associated with sustaining the activity.