Which of the Following Is Not a Necessary Condition for the Contestable

question 103

Multiple Choice

Which of the following is not a necessary condition for the contestable market theory?

• A)Entry into the market is easy.
• B)Exit from an industry is costless.
• C)All firms in the industry have different costs of production.
• D)A new firm entering the market can produce the product at the same cost that current firms produce it.

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Definitions:

Existing Schemes

Pre-established plans or systems in operation.

Schema of Wheeled Vehicles

A cognitive framework or concept that organizes and interprets information related to vehicles with wheels, such as cars, bikes, and trucks.

Assimilated

The process of fully understanding or integrating ideas, information, or culture into one's own knowledge base or cultural understanding.

Tory

Historically, a term used to describe a member or supporter of the Conservative Party in the United Kingdom.