In a Contestable Market

question 61

Multiple Choice

In a contestable market,

• A)Entry occurs when prices rise above average total costs.
• B)Many firms compete,which drives prices down to minimum long-run average total cost.
• C)A few firms use predatory prices to achieve market share.

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Definitions:

Side Effect

An unintended and usually adverse effect produced by a medication or treatment that occurs in addition to the desired therapeutic effect.

Depression

A common and serious mood disorder that affects how you feel, think, and handle daily activities, characterized by persistent feelings of sadness and/or loss of interest.

Subsequent Episodes

Later occurrences or episodes of a condition or illness that happen after the initial episode.

Prevalence

The proportion of a population found to have a particular condition at a specific time.