A Contestable Market Is a Market

question 39

Multiple Choice

A contestable market is a market

• A) that is highly contested by two, and only two, rival firms.
• B) in which the costs of entry and exit are low.
• C) characterized by high profitability and government regulation.
• D) characterized by a large number of firms; in essence, the term means the same thing as pure competition.

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Definitions:

Samuel Gompers

A labor union leader who founded the American Federation of Labor (AFL) and was pivotal in advocating for workers' rights and labor reforms in the United States.

AFL

Short for American Federation of Labor, it is a national federation of labor unions in the United States, founded in 1886.

Exclusive Union Strategy

A labor union approach aiming to be the sole representative of all workers within a given company or industry, often seeking to secure better terms and conditions through collective bargaining.

Closed Shop

A form of union security agreement where the employer agrees to hire union members only, and employees must remain members of the union at all times.