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Many Colleges Use the SAT as an Entrance Requirement for College.Why

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Many colleges use the SAT as an entrance requirement for college.Why? What type of validity does the SAT purport to have?


Definitions:

Economic Profit

The difference between total revenue and total economic costs, including both explicit and implicit costs, reflecting the true profitability of a firm.

Elastic

A characteristic of supply or demand that indicates a high responsiveness to changes in price.

Monopolistic Competitor

A firm operating in a market structure where many companies sell products that are similar but not identical, allowing for some degree of market power and price setting.

Excess Capacity

A situation in which a company can produce more goods or services than currently demanded, due to underused resources.

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