The Price in a Contestable Market Is Similar to That

question 83

Multiple Choice

The price in a contestable market is similar to that in a perfectly competitive market because

• A)firms in the market make an economic profit in the long run.
• B)there are no barriers to entry.
• C)there are many firms in the market.
• D)the Nash equilibrium is that all firms cheat.
• E)collusion is possible.

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Definitions:

Standard Deviation

A statistic that measures the dispersion or variability of a dataset relative to its mean.

Standard Deviation

An indicator of the spread or fluctuations in a data set, showing the degree to which the data points deviate from the average value.

Parameter

A numerical characteristic of a statistical population, such as a mean or standard deviation, that describes some aspect of the population.

Simple Random Sample

A sample in which each member of the population has an equal chance of being selected.