Which of the following quotes shows a contestable market in the widget industry?
A) "I am producing extra widgets,even though it costs me short-run profits,to stop Wally's Widgets from expanding into my market."
B) "I am producing more widgets than Wally and I agreed to in our talk last week."
C) "If only Wally and I could agree on a higher price,we could make more profits."
D) "I have been spending extra on research and development of my new two-way widget."
E) "Wally's Widgets should charge a higher price."
Correct Answer:
Verified
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