The price in a contestable market is similar to that in a perfectly competitive market because
A) there are barriers to entry.
B) there are no barriers to entry.
C) there are many firms in the market.
D) the firm can earn an economic profit in the long run.
B
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The Bretton Woods system required countries to actively buy and sell dollars to maintain fixed exchange rates when:
a. a country experienced a severe bout of inflation. b. the free market equilibrium exchange rate differed from the fixed rate. c. a country experienced serious unemployment. d. the threat of recession began to spread from one country to another. e. worldwide trade began to deteriorate.
If a person drives with less care after purchasing auto insurance, this situation would be an example of a(n):
A. Reverse wealth problem B. Negative externality problem C. Adverse selection problem D. Moral hazard problem