Contestable Markets

question 18

Multiple Choice

Contestable markets

• A) exist where monopolies charge high prices.
• B) exist where the threat of easy entry prevents a dominant company from charging excessive prices.
• C) are markets that have protection from barriers to entry.
• D) make it more challenging for firms to merge.

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Definitions:

Economic Inequalities

The unequal distribution of wealth, income, and access to resources among people, groups, or countries.

Segregation

The enforced separation of different racial groups in a country, community, or establishment, which can be legal or social.

Ku Klux Klan

A white supremacist hate group in the United States that has promoted racism, anti-Semitism, and violence against groups it opposes.

Socialization

The process through which individuals learn and internalize the values, beliefs, and norms of their culture or society, shaping their behaviors and understanding of their roles.