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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Definitions:

ULPA

An acronym for "Uniform Limited Partnership Act," which is a statute that sets forth the legal rules and regulations governing limited partnerships in various jurisdictions.

Expel

Expelling refers to the action of forcing someone or something out of a place or situation.

Limited Partnership

A business structure where some partners have limited liability and limited involvement in the management of the company.

Personal Property

Any movable property that is not attached to or associated with the land. This includes physical objects such as furniture and vehicles, as well as intangible rights.