If a market is contestable, then
A. long-run economic profits are minimal due to inefficiency.
B. long-run economic profits are zero.
C. short-run and long-run economic profits are zero.
D. positive economic profits are maximized due to the efficient production spurred by the threat of entry.
Answer: B
Economics
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Which of the following demand factors are under the control of management?
a. price of product b. advertising c. price of competitors' products d. customer service e. all except c
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Mrs. Dodge has $8 million in income and pays no income taxes. Her income is most likely
A. capital gains. B. interest on corporate bonds. C. interest on municipal bonds. D. offset by mortgage interest.
Economics