The Price in a Contestable Market Is Similar to That

question 113

Multiple Choice

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

• A) there are barriers to entry.
• B) there are no barriers to entry.
• C) there are many firms in the market.
• D) the firm can earn an economic profit in the long run.

---

Definitions:

Theoretical Research

Research designed specifically to test some developmental explanation and expand scientific knowledge.

Hypothesis

A prediction stated in a way that permits it to be tested.

Contextual Factors

Denotes the various situational, environmental, or circumstantial elements that can influence an individual's behavior or an event's outcome.

Eclectic Approach

A method that combines elements from various theories, therapies, or practices to tailor treatment or understanding to an individual's needs.