Even when a market appears to be a monopoly, it can be contestable if there are many potential entrants.
Answer the following statement true (T) or false (F)
True
In contestable markets, which are markets subject to potential entry if prices or profits increase, monopoly behavior may be restrained by potential competition.
Economics
You might also like to view...
The natural unemployment rate is 4 percent and the actual unemployment rate is 7 percent. According to Okun's Law, how does of real GDP compare to potential GDP?
What will be an ideal response?
Economics
The fixed exchange rate regime established at a meeting in New Hampshire in 1944 has been known as the
A) General Agreement on Tariffs and Trade. B) Bretton Woods system. C) International Settlement Fund. D) Balance of Payments Compliance Accord.
Economics