In the deductive reasoning behind the claim that "If firms sell homogenous products, then prices should fall to marginal costs" the role of "firms sell homogenous products" is:
A) a method of proof.
B) a conclusion.
C) the sample.
D) an assumption.

Question

Quizplus · Accepted Answer

"Firms sell homogenous products" is an assumption because it is a premise that must be true in order for the claim to hold. It is not a conclusion that can be deduced from other premises, nor is it a method of proof or a sample.

In the Deductive Reasoning Behind the Claim That "If Firms