Which of the Following Is Not a Condition of a Contestable

question 85

Multiple Choice

Which of the following is not a condition of a contestable market?

• A)There is easy entry into the market.
• B)There is costless exit from the market.
• C)New firms entering the market can produce the product at lower cost than current firms.
• D)Firms exiting the market can easily dispose of their fixed assets by selling them elsewhere.

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Definitions:

Work in Process

Inventory representing partially completed goods that are still in the process of production.

Direct Labor Costs

Expenses related to employees who are directly involved in the production of goods or services, such as wages for assembly line workers.

Direct Materials

Basic substances that can be directly linked to the production process of a product.

Direct Labor Costs

The expenses associated with the wages of employees who are directly involved in the production or manufacturing of goods or services.