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.
D
Economics
You might also like to view...
Downsizing can be represented by
a. moving to a point on the left along the LRATC curve b. moving to a different short-run ATC curve on the right c. remaining on the same short-run ATC curve d. a downward shift in the LRATC curve e. an upward shift in the LRATC curve
Economics
An agricultural economist reports that corn prices are very high this year and that corn growers are earning substantial profits. He concludes that government action is needed to direct more farmers to grow corn. Is such action necessary? Why or why not?
Economics