A Contestable Market Is One in Which

question 199

Multiple Choice

A contestable market is one in which

• A) one dominant firm sets the market price, and all other firms are price takers.
• B) if a firm cuts its price, all other firms will follow the price cut.
• C) one or a small number of firms operate, but faces competition from potential entrants.
• D) a group of firms enter into an agreement to restrict output and raise prices.

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Definitions:

Permeability

The ability of a material to allow fluids or gases to pass through it, often relevant in discussions of soil health, water filtration, and construction materials.

Porosity

Refers to the measure of void spaces in a material, indicating how porous it is.

Clay

A natural, earthy material composed of fine minerals with a grain size of less than 2 micrometers, known for its plasticity when wet and usefulness in ceramics and construction.

Soil Type

A classification based on the physical characteristics of the soil, including texture, fertility, and composition.