Which of the Following Is a Feature of a Contestable

question 123

Multiple Choice

Which of the following is a feature of a contestable market?

• A) There are several firms in the market serving many consumers.
• B) There is a single firm in the market serving many consumers.
• C) The market price is equal to marginal cost.
• D) There is a single firm in the market serving many consumers and the market price is equal to marginal cost.

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Definitions:

Investment

The process of distributing funds or resources with the aim of achieving income or financial gain.

Corporate Profits Tax

A tax imposed on the income or profit of corporations, calculated as a percentage of their earned income.

Investment

The distribution of funds or other resources with the aim of achieving income or profit at a later date.

Business Firms

Organizations involved in the trade of goods, services, or both to consumers, operating in an attempt to profit.