Many small U.S. cities are served by only one or two airlines. If a price increase in these markets allows other airlines to quickly and easily enter the market and compete, economists would call these markets

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In contestable markets, there is no significant barrier to entry or exit for firms, and potential entrants can compete with existing firms easily and quickly. In this scenario, if a price increase in small U.S. cities allows other airlines to enter the market and compete, it suggests a lack of significant barriers to entry, making it a contestable market. Options B, C, and D are not appropriate because they do not accurately describe the characteristics of this market.

Many Small U