Which of the Following Is a Characteristic of a Contestable

question 34

Multiple Choice

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

• A) long-run economic profit
• B) many firms that are small relative to the market
• C) high costs for entry and exit
• D) minimum-cost production methods

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Definitions:

Partnership's Profits

Partnership's profits refer to the share of income generated by a business partnership that is distributed among its partners according to the terms of their agreement.

Personal Income Tax

A tax levied on the income of individuals, which varies according to the income level and financial situation of the taxpayer.

Withdrawing

The act of removing or pulling back from a commitment, activity, bank account, or legal proceeding.

Income

The monetary payment received for the provision of goods, services, or labor from one individual or entity to another.