Which of the Following Is True of a Contestable Market

question 9

Multiple Choice

Which of the following is true of a contestable market?

• A)Competitors act like monopolists.
• B)Competitors act like consumers.
• C)Monopolists act like competitors.
• D)Monopolists act like consumers.
• E)Firms are controlled by the government.

---

Definitions:

Government Tax Subsidy

Financial assistance from the government, often in the form of reduced taxes, to encourage or support particular economic activities.

Tax-Exempt Income

Income that is not subject to taxation by the government.

Health Insurance

A type of insurance coverage that pays for medical and surgical expenses incurred by the insured, often including preventive services, treatments, and surgeries.

Medical Insurance

Health coverage that typically pays for medical, surgical, prescription drug, and sometimes dental expenses incurred by the insured.