An Important Condition for a Contestable Market Is

question 2

Multiple Choice

An important condition for a contestable market is:

• A) all producers have different technologies.
• B) there are high transaction costs.
• C) existing firms cannot respond quickly to entry by lowering their price.
• D) there are sunk costs.

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Definitions:

Democratic Governments

Systems of governance where power is vested in the people, who exercise that power directly or through elected representatives.

British Rule

British Rule refers to the period of history when various parts of the world were governed and administrated by Britain, including the colonial period in America ending with the Revolutionary War.

Eighteenth Century

The eighteenth century spans the years from January 1, 1701, to December 31, 1800, and is marked by the Enlightenment, industrial innovations, and significant political revolutions in America and France.

Colonial Town

A settlement established by colonizing countries during the period of exploration.