In a market that is contestable, but has only a few sellers, the
A) threat of new entrants will prevent prices from rising above the competitive level.
B) producers will be able to charge prices that are high enough to produce long-run economic profits.
C) producers will not face new competition because the barriers to entry are high.
D) market will never be expected to come close to the competitive result.
Correct Answer:
Verified
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
Q175: If a contestable market has only one
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
Q181: Which of the following is a term
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