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

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