The Theory of Contestable Markets Concludes That

question 32

Multiple Choice

The theory of contestable markets concludes that

• A)a small number of firms in an industry is strong evidence that they will perform in a noncompetitive way.
• B)even if the number of sellers in an industry is small, profits can be zero in the industry.
• C)inefficient producers can survive in a contestable market.
• D)a firm in a contestable market will sell at a price above marginal cost.

---

Definitions:

Social Vulnerabilities

The inability of people, organizations, and societies to withstand adverse impacts from multiple stressors to which they are exposed.

File Drawer Effect

A bias in scientific research that results from the tendency to publish only positive or significant findings, while studies with negative or inconclusive results are left unpublished.

Published

The process of making information available to the general public, typically through books, journals, or digital platforms.

Hypothesis

A proposed explanation for a phenomenon, made as a starting point for further investigation.