According to the Contestable Markets Theory

question 91

Multiple Choice

According to the contestable markets theory,

• A)even if an industry is comprised of a small number of firms, this is not sufficient evidence that the firms perform in a noncompetitive way.
• B)profits cannot be zero in an industry if the number of sellers in the industry is small.
• C)if a market is contestable, inefficient producers are more likely to survive than if the market is not contestable.
• D)profits cannot be zero in an industry if the number of sellers in the industry is large.

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Definitions:

Eye-Contact

The act of looking directly into another person's eyes, which can convey various messages or emotions depending on the context.

Empty Plate

Often symbolizes hunger or poverty, but in the context of discussions, it can represent opportunities or starting from scratch.

Visual Dominance Behaviour

A nonverbal communication pattern where individuals use eye contact or gaze to assert dominance or control in social interactions.

Lower-Status Listener

A listener perceived to have a lower hierarchical position or less power in a given social or professional context, affecting communication dynamics.