In a Sequential Contestable Market Game

question 150

Multiple Choice

In a sequential contestable market game,

• A) the dominant firm always makes a monopoly profit, while other firms make zero economic profits.
• B) the outcome is always a monopoly equilibrium.
• C) a small number of firms can behave like firms in perfect competition.
• D) a firm that enters the market first is protected from potential entrants by natural barriers.

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