When markets are contestable,a monopoly firm must behave as if it had competitors,even though the market structure is monopolistic.

Name: When markets are contestable,a monopoly firm must behave as if it had competitors,even though the market structure is monopolistic.
Brand: Quizplus
Rating: 4.9 (34 reviews)

Question

Quizplus · Accepted Answer

In a contestable market, potential competitors can enter and exit the market easily, which makes the monopoly firm behave as if it had competitors to avoid losing its market power. Therefore, the statement is true.

When Markets Are Contestable,a Monopoly Firm Must Behave as If