Rand’s philosophy misrepresents the Positivist practice of falsification. Rand’s argument against falsification is illogical and false.
The Positivist process of falsification evaluates propositions by trying to identify and observe evidence of corroboration and contradiction. (http://plato.stanford.edu/entries/popper/ )
Rand’s philosophy rejects falsification, pg. 159, saying it requires us to: “evade the facts of experience and arbitrarily to invent a set of impossible circumstances that contradict these facts.”
A) To say a contradictory circumstance is impossible is to say the proposition is true before it is tested. That argument is not logical.
B) The Positivist process of falsification is to identify contradictory evidence which is possible to be observed. If impossible circumstances were knowingly invented, there would be no need (or funding) to try to observe it. Rand’s argument is false.
Ayn Rand, An Introduction to Objective Epistemology, Signet Edition, New American Library. Also Ch. 2, the Analytic/Synthetic Dichotomy by Leonard Piekoff.
http://plato.stanford.edu/entries/popper/ is the source for my paraphrasing of the practice of falsification.