Contestable Markets Tend to Arise When

question 128

Multiple Choice

Contestable markets tend to arise when:

• A) fixed costs are high.
• B) the threat of new firms entering the market is low.
• C) the incumbent firm does not control access to an important resource.
• D) government regulations are in effect.

---

Definitions:

Administrative Agency

A government body responsible for implementing legislation, enforcing laws, and regulating activities within its jurisdiction.

Congress

The national legislative body of the United States, consisting of the Senate and the House of Representatives.

Funding

Funding refers to the financial resources provided for a specific purpose, such as running a project, a business venture, or a research initiative.

Administrative Agencies

Administrative agencies are government bodies responsible for the oversight and administration of specific functions, such as regulation and enforcement of laws within their specialization.