If a contestable market has only one seller, which of the following will keep the seller from producing inefficiently and charging a price that generates long-run economic profits?
A) government regulations
B) low costs of entry into and exit from the market
C) substantial economies of scale that provide a competitive advantage to large firms in such markets
D) the threat of a government takeover of the firms in these markets
Correct Answer:
Verified
Q170: Which of the following is a characteristic
Q171: Which of the following is not a
Q172: The term price searcher applies to all
Q173: Which of the following is a true
Q174: Even when there are only a few
Q176: In a market that is contestable, but
Q177: Firms that are price searchers
A) will eventually
Q178: A competitive price-searcher market is best described
Q179: If a market is contestable, the market
Q180: A contestable market is a market
A) that
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents