Which of the Following Is Not a Condition of a Contestable

question 145

Multiple Choice

Which of the following is not a condition of a contestable market?

• A)There is easy entry into the market.
• B)There is costless exit from the market.
• C)New firms entering the market can produce the product at lower cost than current firms.
• D)Firms exiting the market can easily dispose of their fixed assets by selling them elsewhere.
• E)None of the above; that is, all of the above are conditions of a contestable market.

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Definitions:

Exact Interest

A method of calculating interest based on a 365-day year or actual number of days in a loan or investment period, providing a precise interest calculation.

365-Day Year

A conventional method of calculating interest based on a 365-day year, often used in financial calculations.

Estimate Interest

An approximation of the interest amount over a certain period based on a given rate.

Shortcut

A direct route or method that reduces the time or effort to complete a task.