Which firm's market is the most contestable?
A) the only cable TV provider in town
B) the only sewer-and-water company in town
C) the only hospital in town
D) the only Chinese restaurant in town

Question

Quizplus · Accepted Answer

The Chinese restaurant market is likely the most contestable because it has low barriers to entry - anyone with the skills and resources to start a restaurant can do so relatively easily. Cable TV, sewer and water, and hospital services involve high fixed costs and regulatory barriers, which can make it difficult for new firms to enter and compete.

Which Firm's Market Is the Most Contestable