If a Market Is Contestable, Then

question 127

Multiple Choice

If a market is contestable, then

• A)a cartel will form in the industry.
• B)economic profits are small or zero.
• C)firms face a vertical demand curve.
• D)there is a dominant firm in the market.

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Definitions:

Muhammad

The founder of Islam, regarded by Muslims as the last messenger and prophet of God, who lived in the 6th and 7th centuries CE in Arabia.

Dome of the Rock

An Islamic shrine located on the Temple Mount in the Old City of Jerusalem, featuring a large golden dome, it is one of the oldest works of Islamic architecture.

Mihrab

A semicircular niche set into the qibla wall of a mosque.

Qibla Wall

The wall in a mosque that faces Mecca, towards which Muslims pray; often marked by a Mihrab (niche).