Even if a market is not competitive,the firms in the market may behave competitively if
A)Potential competition exists.
B)There are economies of scale.
C)A natural monopoly exists.
D)The market is regulated.

Question

Quizplus · Accepted Answer

Even if a market is not competitive, the firms in the market may behave competitively if potential competition exists. This is because the threat of new entrants can force existing firms to lower their prices and/or improve their quality in order to retain their customers and prevent competition from entering the market.

Even If a Market Is Not Competitive,the Firms in the Market