A market in which firms can enter and leave so easily that firms in the market face competition from potential entrants is called a
A) contestable market.
B) cartel.
C) limit pricing market.
D) monopolistic competition market.

Question

Quizplus · Accepted Answer

A contestable market is one where there are no barriers to entry or exit, allowing firms to enter and leave easily, thus facing competition from potential entrants.

A Market in Which Firms Can Enter and Leave So