A market is defined as contestable if entry to it
A) is easy, but exit from it is difficult.
B) is difficult, but exit from it is easy.
C) and exit from it are both difficult.
D) and exit from it are both easy.

Question

Quizplus · Accepted Answer

A market is considered contestable when both entry and exit are easy, allowing for potential competition to influence the market even if actual entry does not occur.

A Market Is Defined as Contestable If Entry to It