The contestable markets hypothesis differs from the requirements for perfect competition in that

A. the latter requires many competitors and the former only one … who fears competition.
B. the latter doesn't require freedom of entry and the former does.
C. the former requires many competitors and the latter only one … who fears competition.
D. the former doesn't require freedom of entry and the latter does.


Answer: A

Economics

You might also like to view...

When is price fixing not a violation of the antitrust laws?

What will be an ideal response?

Economics

According to the law of demand, if the price of a netbook decreases, ceteris paribus, the demand for netbooks would increase

a. True b. False Indicate whether the statement is true or false

Economics

Why does the United States tend to use more capital-intensive methods than many other places?

a. Machinery is relatively expensive in the United States. b. Wages are relatively low in the United States. c. Labor is relatively expensive in the United States. d. Machinery is relatively scarce in the United States.

Economics

Suppose the cost of producing copper tubing is $1 per foot. If production costs were measured on the vertical axis and quantity of copper tubing were measured on the horizontal axis, which of the following lines would have the smallest slope?

a. a line representing the quantity of tubing measured in inches b. a line representing the quantity of tubing measured in feet c. a line representing the quantity of tubing measured in yards d. the 45-degree line e. any vertical line

Economics