Contestable markets tend to arise when:
A) fixed costs are high.
B) the threat of new firms entering the market is low.
C) the incumbent firm does not control access to an important resource.
D) government regulations are in effect.

Question

Quizplus · Accepted Answer

Contestable markets arise when there are no significant barriers to entry, such as control over important resources by incumbent firms, allowing new firms to enter and exit the market freely.

Contestable Markets Tend to Arise When