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Todorov and colleagues asked Princeton University students to pick who won a series of U.S.Senate and U.S.House of Representative elections.Students correctly picked the winners the majority of the time.What were their guesses based on?
Total Revenue
The overall amount of money generated by a business from its activities, such as sales of goods or services, before any expenses are subtracted.
Normal Profit
The minimum profit necessary for a company to remain competitive in the market, often considered the cost of doing business.
Marginal Cost
The cost increase associated with the production of an extra unit of a product or service.
Competitive Firms
Businesses that operate in a market environment where they vie with others to offer goods or services, focusing on price, quality, and innovation.
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