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:

Age

The length of time that a person or thing has existed; a particular stage in someone's life.

Amount of Hair

A characteristic referring to the density, thickness, and overall quantity of hair on an individual's body or head.

Negatively Correlated

A relationship between two variables in which one variable increases as the other decreases.

Correlation Coefficient

A statistical measure that calculates the strength and direction of a linear relationship between two variables on a scatterplot.