According to the Theory of Contestable Markets,monopoly May Not Be

question 99

Multiple Choice

According to the theory of contestable markets,monopoly may not be a problem if

• A)The structure of a market is competitive.
• B)Antitrust regulations are enforced.
• C)Firms can exit from the market.
• D)Potential competition exists.

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Definitions:

True Values

Refers to the actual, inherent value or worth of an item, property, or financial instrument, as opposed to its market price or cost.

Just over

Slightly more than a specified amount, number, or degree.

Consumer Surplus

The discrepancy between what consumers are ready and able to spend on a good or service and the amount they end up paying.

Producer Surplus

The difference between the amount that producers are willing to accept for a good or service and the actual amount they receive.