In a market that is contestable, but has only a few sellers, the
a. threat of new entrants will prevent prices from rising above the competitive level.
b. producers will be able to charge prices that are high enough to produce long-run economic profits.
c. producers will not face new competition because the barriers to entry are high.
d. market will never be expected to come close to the competitive result.
A
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If an economist claims there are substitutes for fossil fuels, she is really saying
A) fossil fuels don't have to be economized. B) fossil fuels aren't scarce goods. C) fossil fuels aren't important. D) fossil fuels are used, and maintained, only at a cost. E) economists don't care for fossil fuels.
Which groups were opposed to the Bank of the United States?
A) northeastern industrial interests B) northeastern financial interests C) southern and western agrarian and small-business interests D) exporters
Equilibrium price is _____ and equilibrium quantity is _____ units.
A. $4; 4
B. $6; 10
C. $8; 16
D. $8; 10
Do firms in a perfectly contestable market earn positive economic profit in the long run? Explain
What will be an ideal response?