An Explanation That Is Based on the Evidence of the Senses

question 54

Multiple Choice

An explanation that is based on the evidence of the senses and on objective and systematic observation is:

• A) rational.
• B) testable.
• C) empirical.
• D) parsimonious.

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Definitions:

Total Costs

The sum of all expenses incurred in the production of goods or services, including both fixed and variable costs.

Variable Costs

Costs that vary directly with the level of production or sales volume.

Fixed Costs

Costs that do not vary with the level of output or production, such as rent or salaries.

Profit

The financial gain obtained when the revenue generated from business activities exceeds the expenses, costs, and taxes involved in sustaining the activity.