Which of the Following Is Not Correct About Contestable Markets

question 58

Multiple Choice

Which of the following is not correct about contestable markets?

• 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)Firms already in the market have technological advantages.

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Definitions:

Fraudulent Appropriation

The illegal use or misallocation of funds or property that belongs to someone else without their authorization, typically with deceitful intent.

Public Order Crime

Crimes that are said to interfere with the operations of society and the ability of people to function efficiently, often involving victimless acts.

Detrimental to Society

Refers to actions or behaviors that are harmful or disadvantageous to the well-being of a community or society.

Public Order Crimes

Offenses that are considered contrary to public values and morals, such as vandalism, drug use, and disorderly conduct.