As Long as a Market Is Contestable, Then Even If

question 160

Multiple Choice

As long as a market is contestable, then even if it has only a few sellers, the

• A) threat of new entrants will prevent the prices from rising above the competitive level.
• B) producers will be able to charge prices that are high enough to produce long-run economic profits.
• C) producers will not face new competition because the barriers to entry are high.
• D) market will never be expected to come close to the competitive result.

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Definitions:

Motor Cortex

A region of the cerebral cortex involved in planning, controlling, and executing voluntary movements.

Somatosensory Cortex

A part of the brain that processes sensory input from various parts of the body.

Auditory Association Area

A region of the brain involved in processing and integrating auditory information, crucial for understanding spoken language.

Phineas Gage

A railroad construction foreman known for surviving a severe brain injury in the 19th century, which significantly changed his personality and behavior, contributing to the understanding of the brain's role in determining personality.