Solved

Which of the Following Statements About Contestable Markets Is False

Question 21

Multiple Choice

Which of the following statements about contestable markets is false?


A) The higher the entry costs to the industry, the greater the threat of competition.
B) If there is potential competition, a monopolist may be forced to behave as if it were in a competitive market.
C) The lower the exit costs from the industry, the greater the threat of competition.
D) The threat of competition has a similar effect to actual competition.
E) Monopolies may remain because of economies of scale and the size of the market.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents