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Your friend Dominic is complaining about having to take the Graduate Record Examination (GRE) ,a test similar to the ACT and SAT that is required to go to graduate school.He complains that it doesn't really measure how well he will likely do in graduate school.Dominic is questioning the ________ of the test.
Short-Run Supply
The supply of goods that occurs when the sellers are only able to change some, but not all, conditions of production.
Diminishing Marginal Returns
A principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot continue to increase if other inputs remain constant.
Perfectly Competitive
A perfectly competitive market is one where many buyers and sellers trade identical products so that each has no influence on the market price.
Short Run
A period in which at least one factor of production is fixed, limiting the ability of a firm to adjust to changes in market demand or supply.
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