The Theory of Contestable Markets Concludes That

question 109

Multiple Choice

The theory of contestable markets concludes that

• A)a small number of firms in an industry is strong evidence that they will perform in a noncompetitive way.
• B)even if the number of sellers in an industry is small, profits can be zero in the industry.
• C)inefficient producers can survive in a contestable market.
• D)a firm in a contestable market will sell at a price above marginal cost.
• E)all of the above

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