Which Increases the Contestability of a Market

question 9

Multiple Choice

Which increases the contestability of a market?
I. low fixed costs of entry
II. no legal barriers to entry
III. consumers are willing to try substitute goods

• A) I, II, and III
• B) II and III only
• C) I only
• D) II only

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Definitions:

Corporate Debt Issues

refer to the financial obligations or borrowings taken on by companies, typically through the issuance of bonds, loans, or commercial paper.

Corporate Equity Issues

The process by which companies issue shares of stock to raise equity capital.

Municipal Debt Issues

Bonds or other forms of debt issued by municipalities to finance public projects.

Equity Capital

Funds raised by a company in exchange for shares of ownership.