One of the Characteristics of a Contestable Market Is That

question 17

Multiple Choice

One of the characteristics of a contestable market is that:

• A) all firms have different productive technology.
• B) consumers react quickly to a price change.
• C) existing firms respond quickly to entry by lowering their price.
• D) there are sunk costs.

---

Definitions:

Port of Contact

A port or harbor where goods, services, and cultural exchanges occur, serving as a point of entry and interaction for different regions or countries.

American Traders

Individuals or entities involved in the commerce of goods and services within the United States, playing a role in both domestic and international trade.

Distinctly American Character

Unique qualities or cultural aspects that define the identity of the United States, including individualism, freedom, and diversity.

Agriculture

The science, art, and business of cultivating soil, producing crops, and raising livestock; it is a key sector for food production and rural livelihoods.