In the Absence of Natural Monopoly Conditions,firms in a Contestable

question 64

Multiple Choice

In the absence of natural monopoly conditions,firms in a contestable market will

• A) choose their price and output competitively.
• B) be able to successfully form a cartel and share monopoly profit.
• C) will not produce their output at the lowest possible cost.
• D) produce more than a monopoly but less than a competitive industry.