Which of the Following Is Not Correct About Contestable Markets

question 104

Multiple Choice

Which of the following is not correct about contestable markets?

• A)There is easy entry into and costless exit from the market.
• B)New firms entering the market can produce the product at the same cost as current firms.
• C)Firms exiting the market can easily dispose of their fixed assets by selling them elsewhere.
• D)Firms already in the market have technological advantages.
• E)b and c

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Definitions:

Midbrain

A part of the brainstem that plays an important role in vision, hearing, motor control, sleep/wake, arousal, and temperature regulation.

Medulla

The inner region of an organ or tissue, notably in the adrenal glands and kidneys, involved in various regulatory processes.

Infundibulum

A funnel-shaped structure, specifically in anatomy can refer to the connection between the hypothalamus and the pituitary gland or the passage in the ovary through which the egg travels.

Corpus Callosum

A thick band of nerve fibers that divides the cerebral cortex lobes into left and right hemispheres, facilitating communication between the two sides of the brain.