Which of the Following Is Not a Condition of a Contestable

question 34

Multiple Choice

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

• A)There is easy entry into and costless exit from the market.
• B)New firms entering the market can produce the product at the same cost as current firms.
• C)Firms exiting the market can easily dispose of their fixed assets by selling them elsewhere.
• D)New firms entering the market produce a higher-quality product than existing firms.

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Definitions:

Sustainable Business

A business model that operates in ways that do not deplete natural resources or harm the environment, ensuring long-term ecological balance.

Natural Environment

The physical, biological, and chemical surroundings in which living and non-living organisms interact.

Future Generations

The subsequent generations of people who will live after the current one and whose well-being is considered in long-term planning and environmental conservation.

Specific Environment

The unique external forces and conditions, including competitors, customers, and regulatory bodies, that directly affect how an organization operates.