"The Theory's Predictions Are Consistent with What I Believe,so Now

question 23

Multiple Choice

"The theory's predictions are consistent with what I believe,so now I have good reason to believe what the theory says." This statement is likely to have been made by a person who believes that

• A) theories should be tested by gathering and analyzing data.
• B) theories are descriptive of reality.
• C) theories should be falsifiable or refutable.
• D) b and c
• E) none of the above

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Definitions:

Demand Curve

A graphical representation of the relationship between the price of a good and the quantity demanded by consumers, typically downward-sloping.

Marginal Revenue

The additional income earned by producing and selling one more unit of a product or service.

Marginal Revenue

The additional revenue that a firm receives from selling one more unit of a good or service.

Marginal Cost

The cost of producing one additional unit of a product, often used to decide the amount of production.