A Contestable Market Is Similar to a Perfectly Competitive Market

question 59

Multiple Choice

A contestable market is similar to a perfectly competitive market in that there

• A)are barriers to entry.
• B)are no barriers to entry.
• C)can be only one firm in the market.
• D)will be no entry if the existing firm makes an economic profit.
• E)is a perfectly elastic demand.

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Definitions:

Financial Results

The outcomes of a company's operations and activities in terms of profit or loss, revenue, and expense over a specific period.

Audit Committee

A subset of a company's board of directors that oversees financial reporting and disclosure.

Review And Reconciliation

The process of verifying the accuracy of financial records by comparing two sets of data or accounts to ensure they match.

Internal Auditors

Professionals employed by an organization to perform audits on its operations, systems, and processes to ensure accuracy, compliance, and efficiency.