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.

---

Definitions:

Drugs or Alcohol

Substances that can alter perception, consciousness, and behavior when consumed.

Spouse Abuse

A pattern of abusive behavior in a marital or intimate partner relationship, where one partner seeks to dominate or control the other.

Substance Abuse

The harmful or hazardous use of psychoactive substances, including alcohol and illicit drugs.

Cultural and Political Climate

The cultural and political climate of a society encompasses the prevailing attitudes, customs, and laws that shape the social and political life of that society.