A Contestable Market Is a Market

question 39

Multiple Choice

A contestable market is a market

• A) that is highly contested by two, and only two, rival firms.
• B) in which the costs of entry and exit are low.
• C) characterized by high profitability and government regulation.
• D) characterized by a large number of firms; in essence, the term means the same thing as pure competition.

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Definitions:

Television Commercials

Short visual advertisements that are broadcasted on television to promote products, services, or ideas to a wide audience.

Situational Influences

Factors like time and involvement that serve as an interface between consumers and their decision-making process.

Decision-making Process

The steps taken by individuals or groups to choose among alternatives and solve problems.

Time

The indefinite continued progress of existence and events in the past, present, and future regarded as a whole.