Which of the Following Is Not a Condition of a Contestable

question 34

Multiple Choice

Which of the following is not a condition of a contestable market?

• A)There is easy entry into and costless exit from the market.
• B)New firms entering the market can produce the product at the same cost as current firms.
• C)Firms exiting the market can easily dispose of their fixed assets by selling them elsewhere.
• D)New firms entering the market produce a higher-quality product than existing firms.

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Definitions:

Brainstem

The central trunk of the brain, consisting of the medulla oblongata, pons, and midbrain, and responsible for regulating vital functions.

Ventricles

Hollow structures within the heart and brain; in the heart, they are chambers that pump blood out to the body and lungs; in the brain, they produce and store cerebrospinal fluid.

Vestibulocochlear Nerve

A cranial nerve responsible for hearing and balance, transmitting information from the inner ear to the brain.

Cranial Nerves

Twelve pairs of nerves that emerge directly from the brain, rather than the spinal cord, serving various sensory and motor functions in the head and neck.