If a Market Is Contestable, Then

question 128

Multiple Choice

If a market is contestable, then

• A)a cartel will form in the industry.
• B)economic profits are small or zero.
• C)firms face a vertical demand curve.
• D)there is a dominant firm in the market.
• E)none of the above

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Definitions:

Direct Labour Hours

The total hours worked by employees directly involved in the manufacturing process, usually influencing variable expenses.

T Accounts

A visual representation used in accounting to depict debits and credits for individual accounts, shaped like the letter "T".

Direct Materials

Direct materials are raw materials that are directly incorporated into and can be easily tracked to the finished product.

Work in Process

Inventory items that are in the production process but are not yet completed.