As Long as a Market Is Contestable, Then Even If

question 160

Multiple Choice

As long as a market is contestable, then even if it has only a few sellers, the

• A) threat of new entrants will prevent the prices from rising above the competitive level.
• B) producers will be able to charge prices that are high enough to produce long-run economic profits.
• C) producers will not face new competition because the barriers to entry are high.
• D) market will never be expected to come close to the competitive result.

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Definitions:

Schematic

Relating to or constituting a scheme or diagram; broadly conceptual.

Self-Discrepancies

Differences between one's self-concept and one's ideal self or ought self, leading to emotional discomfort.

Sociometer Theory

A psychological theory suggesting that self-esteem acts as an internal gauge of the degree to which one is included or valued in social groups.

Self-Reference Effect

The enhancement of long-term memory that comes from thinking about how information being memorized relates to the self.