A Market Is Not Contestable If

question 73

Multiple Choice

A market is not contestable if:

• A)all producers have access to the same technology.
• B)consumers respond quickly to a price change.
• C)existing firms cannot respond quickly to entry by lowering their price.
• D)there are sunk costs.

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Definitions:

Free Will-Determinism

The philosophical debate regarding the extent to which humans have the freedom to make choices versus being influenced by external factors or destiny.

Erikson's Theory

A developmental theory by Erik Erikson that outlines eight stages of psychosocial development throughout the human life cycle.

Partially Deterministic

A concept in which outcomes are determined by a combination of deterministic and random (or probabilistic) factors.

Life Goal

A long-term aim or primary objective that an individual strives to achieve throughout their lifetime.