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:

Oranges

A citrus fruit commonly consumed fresh or processed for its juice, known for its rich vitamin C content.

Terms of Trade

The ratio at which a country can trade its exports for imports from other countries, reflecting the relative prices of goods between nations.

Exchange Rate

The ratio at which two currencies are traded. The price of one currency in terms of another.

Imported Product

Items or services that are transferred into a country from abroad with the intent to sell or use them.