If a Market Is Contestable, Then

question 175

Multiple Choice

If a market is contestable, then

• A)long-run economic profits are minimal due to inefficiency.
• B)long-run economic profits are zero.
• C)short-run and long-run economic profits are zero.
• D)positive economic profits are maximized due to the efficient production spurred by the threat of entry.

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Definitions:

Nodes

Points of intersection or branching, such as lymph nodes in the immune system or nodes in a network or data structure.

Axillary Buds

Buds located in the axil of leaves that have the potential to develop into branches, flowers, or leaves.

Opposite

Being in a position on the other side; facing something, especially something of the same type or a corresponding part.

Leaf Arrangement

The pattern or configuration in which leaves are distributed on the stem of a plant.