Which of the Following Statements Is Correct

question 4

Multiple Choice

Which of the following statements is correct?

• A) if there is a theory about something, it must be correct
• B) it is impossible to assess the appropriateness of a particular theory
• C) a theory does not have to be correct to be useful
• D) a theory can only be useful if it is correct

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Definitions:

Downward-Sloping Demand

Describes the general tendency for the demand for a good or service to decrease as its price increases.

Monopolistic Competitors

Firms in a market structure where many companies sell products or services that are similar but not identical, allowing for competition based on quality, price, and branding.

Linear Demand Curve

A demand curve that shows a constant relationship between price and quantity demanded, typically resulting in a straight line when graphed.

Total Revenue

The overall amount of money generated by a business from selling its goods or services, without subtracting any costs.