If a market is contestable, the market will be characterized by
A) minimum-cost production methods and a competitive (normal) profit rate.
B) high barriers to entry and a small number of suppliers.
C) prices in excess of production costs and mergers leading to monopoly.
D) a large number of suppliers offering a homogeneous product.
Correct Answer:
Verified
Q174: Even when there are only a few
Q175: If a contestable market has only one
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
Q180: A contestable market is a market
A) that
Q181: Which of the following is a term
Q182: In the short run, a price searcher
Q183: A firm in a competitive price-searcher market
Q184: A competitive price-searcher market is characterized by
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