Which of the Following Statements Is TRUE About Contestable Markets

question 225

Multiple Choice

Which of the following statements is TRUE about contestable markets?

• A) There are significant barriers to entry.
• B) Firms earn large economic profits.
• C) Each firm faces a perfectly elastic demand.
• D) There are few firms in the industry.

---

Definitions:

Transform Cultures

The process of making significant and fundamental changes to the shared values, beliefs, norms, and practices within an organization to achieve desired outcomes.

Domestic Corporations

Companies that are incorporated in, and operate primarily within, the country they are registered.

World's Economy

Describes the global network of economic activities, including production, consumption, and trade of goods and services across different countries.

U.S. Companies

Businesses that are incorporated, operate, or have their primary base of operations within the United States.