According to Contestable Market Theory

question 107

Multiple Choice

According to contestable market theory:

• A) barriers to entry are much more important than market structure in determining the degree of price competition in an industry.
• B) barriers to entry are much less important than market structure in determining the degree of price competition in an industry.
• C) barriers to entry and market structure are both important in determining the degree of price competition in an industry.
• D) neither barriers to entry nor market structure affects the degree of price competition in an industry.

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