A Market Is NOT Contestable If

question 36

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:

Incentive Obstacles

Challenges faced in creating or maintaining motivation among stakeholders, often due to misaligned goals or insufficient rewards.

Compensation Plan

A structured policy designed by businesses to remunerate its employees, which can include salaries, wages, bonuses, and commissions.

Supply Chain Coordination

The practices and processes aimed at integrating activities and optimizing efficiencies across the supply chain to better serve the end customer.

Sell-Through

The percentage of units sold versus the number of units that were available to be sold, typically used to evaluate the demand and success of a product.