Contestable Markets Are Markets in Which

question 265

Multiple Choice

Contestable markets are markets in which

• A) entry costs are so high that the threat of entry keeps prices high.
• B) entry is extremely difficult.
• C) potential competition does not exist.
• D) entry costs are so low that the threat of entry keeps prices low.

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Definitions:

Leases

Legal agreements that grant the right to use or occupy property for a specified period of time in exchange for rent.

Statute of Frauds

A legal principle that requires certain types of contracts to be in writing and signed by all parties involved to be enforceable.

Russia

Russia is a sovereign country in Eastern Europe and Northern Asia, known for its vast land area, cultural heritage, and as a significant global political and economic player.

Court of Equity

A court of equity is a judicial body empowered to apply principles of equity, as opposed to law, to cases brought to it.