Contestable Markets Are Based on Three Assumptions: Entry Is Free

question 53

True/False

Contestable markets are based on three assumptions: entry is free and costless, new firms can enter with no price reaction and exit is free and costless.

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Definitions:

Strategy

A plan of action designed to achieve a long-term or overall aim.

Telemarketing

A method of direct marketing in which a sales representative solicits prospective customers to buy products or services over the phone.

Targeted Groups

Specific segments of the population identified as potential recipients for particular messages, products, or services based on common characteristics or needs.

Prospect

An individual or organization considered likely to become a customer, often identified and approached in the early stages of the sales process.