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If a New Entrant (Or an Established Firm) Wants to Leave

Question 162

Multiple Choice

If a new entrant (or an established firm) wants to leave a contestable market,


A) all, or nearly all of, the invested capital values can be recovered.
B) another firm will always enter to take its place.
C) it must accept large losses in its capital investment, so it is unlikely to exit.
D) its leaving will be contested by regulators in the market who seek to prevent exit.

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