If a Contestable Market Has Only One Seller, Which of the Following

question 71

Multiple Choice

If a contestable market has only one seller, which of the following will keep the seller from producing inefficiently and charging a price that generates long-run economic profits?

• A) government regulations
• B) low costs of entry into and exit from the market
• C) substantial economies of scale that provide a competitive advantage to large firms in such markets
• D) the threat of a government takeover of the firms in these markets

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Definitions:

Correct Meaning

A rephrased explanation or interpretation of a word, phrase, or concept that is accurate or true.

Growth Hormone

A hormone produced by the pituitary gland that stimulates growth, cell reproduction, and regeneration in humans and other animals.

Correct Abbreviation

The approved or standard shortening of words or phrases, particularly in professional or academic contexts to ensure clarity and uniformity.

FBS

Fasting blood sugar; a test measuring the glucose levels in blood after a period of fasting to assess for diabetes or pre-diabetes.