A market which firms can enter if they choose and exit without losing money invested is
A)pure monopoly.
B)duopoly.
C)contestable.
D)a market where there are kinked demand curves.

Question

Quizplus · Accepted Answer

A contestable market is one where firms can freely enter and exit without any barriers to entry or exit. This means that firms are not locked into the industry and can leave without losing their invested money. In contrast, a pure monopoly has only one seller and no close substitutes, meaning there are significant barriers to entry, and a duopoly has only two sellers, meaning that there is limited competition but also some barriers to entry. The kinked demand curve model is a theoretical model that explains price rigidity in oligopolistic markets and does not directly relate to the ease of entry or exit in a market.

A Market Which Firms Can Enter If They Choose and Exit