According to the Contestable Markets Theory

question 100

Multiple Choice

According to the contestable markets theory,

• A)even if an industry is comprised of a small number of firms, this is not sufficient evidence that the firms perform in a noncompetitive way.
• B)profits cannot be zero in an industry if the number of sellers in the industry is small.
• C)if a market is contestable, inefficient producers are more likely to survive than if the market is not contestable.
• D)b and c
• E)a, b, and c

---

Definitions:

No-Solicitation Rules

Rules set by employers that limit or prohibit the solicitation (including union solicitation) within the workplace, often to maintain workflow and avoid disruptions.

Union Representation

The act of a union acting as an intermediary between its members and the employer, negotiating on behalf of workers to improve their working conditions and rights.

Long Hours

Extended periods of work time that exceed the standard working hours, often associated with high workload demands and potentially impacting workers' health and work-life balance.

Low Pay

Compensation for work that is considered insufficient to meet basic living expenses; often subject to debate and legislation.