What Are the Two Main Reasons to Conduct a Factorial

question 10

Multiple Choice

What are the two main reasons to conduct a factorial study?

• A)To increase internal validity and to establish external validity
• B)To compare participant variables and to establish covariance
• C)To find moderators and to find mediators
• D)To test limits and to test theories

---

Definitions:

Inelastic

Describes demand that does not significantly change with a change in price.

Natural Monopoly

A market structure where a single supplier efficiently provides all the goods or services due to high fixed or start-up costs, making it impractical for multiple firms to operate.

Long-run Average Costs

The average cost per unit of output when all factors of production - including capital - can be varied, typically showing economies of scale.

Economies of Scale

The economic gains experienced by companies due to their operational scope, with per-unit production costs usually falling as the operational size expands.