A Contestable Market Is One in Which

question 68

Multiple Choice

A contestable market is one in which:

• A)a small number of firms operate,keeping price above marginal cost.
• B)the market price is independent of the number of firms.
• C)the price in the market depends upon the number of firms because entry is free.
• D)the lack of barriers to entry causes price to remain low.

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Definitions:

Letters Of Credit

Financial instruments issued by a bank guaranteeing a buyer's payment to a seller, within a specific timeframe, under specified conditions.

Material Terms

Essential conditions or clauses within a contract that significantly affect the performance obligations, the breach of which would substantially change the agreement's outcome.

Damages

Monetary compensation that a party is ordered to pay to another for harm or injury.

Negotiable Instrument

A written promise to pay a specified sum of money, payable either on demand or at a specific future date, with the document listing the name of the person who will make the payment.