The theory of contestable markets places more emphasis than orthodox market structure theories on
A)the number of sellers in an industry.
B)the type of product produced in an industry.
C)the issue of entry into and exit from an industry.
D)who has access to relevant information.

Question

Quizplus · Accepted Answer

The theory of contestable markets focuses on the conditions of entry and exit in a market, rather than the number of firms, the type of products, or information access. It suggests that a market can be competitive even with a few firms if there are no barriers to entry or exit.

The Theory of Contestable Markets Places More Emphasis Than Orthodox