For the Theory of Contestable Markets to Work, Four Conditions

question 22

Multiple Choice

For the theory of contestable markets to work, four conditions have to be met: no barriers to market entry, no economies of scale present, consumer willingness to switch between carriers, and

• A) sellers and buyers of such small size that price or supply cannot be influenced.
• B) existing carriers prevented from responding to new entrants' lower prices.
• C) mutual interdependence between various sellers.
• D) no one seller controls a significant portion of the market.

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Definitions:

Core Job Characteristics

Key aspects of a job that significantly impact employee motivation, satisfaction, and performance, such as skill variety, task identity, and autonomy.

Critical Psychological States

Part of the Job Characteristics Model, these states are believed to be key for achieving positive outcomes in job redesign efforts, including experienced meaningfulness of the work, experienced responsibility for outcomes, and knowledge of results.

Experienced Meaningfulness

The feeling of value and purpose in one’s work, leading to increased motivation and job satisfaction.

Growth-need Strength

The degree to which an individual needs personal growth, development, and intrinsic motivation at work.