Which of the Following Statements Is TRUE About Contestable Markets

question 34

Multiple Choice

Which of the following statements is TRUE about contestable markets?

• A)There are significant barriers to entry.
• B)Firms earn large economic profits.
• C)Each firm faces a perfectly elastic demand.
• D)There are few firms in the industry.
• E)The Herfindahl-Hirschman Index is close to zero.

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Definitions:

Dermis

The substantial living tissue layer under the epidermis that constitutes the actual skin, including sweat glands, hair follicles, and additional elements.

Fingerprints

Unique patterns formed by ridges on the tips of fingers, used for identification purposes due to their individual uniqueness to each person.

Mantoux Test

A diagnostic tool used to detect exposure to tuberculosis bacteria by injecting a small amount of tuberculin into the skin of the forearm and observing the reaction.

Heaf Test

A tuberculin skin test used primarily in the UK to screen for tuberculosis infection by measuring the immune system's response.