What is a contestable market?
What will be an ideal response?
A contestable market refers to a situation where there are low barriers to entry. Existing firms in the industry must behave as if they are faced with competing firms, even though the competition does not really exist. Simply the threat of competition can force firms to keep their price low.
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How would you contrast the interactions within a small family to those in the market place? In what way could you argue that the ways in which interactions are governed in the family can never work in a larger market setting -- just as the ways in which interactions are structured in market settings can never work well in families?
What will be an ideal response?
Taking action to reveal private information about someone else is called:
A. screening. B. signaling. C. discriminating. D. illegal.
Jamal maximizes utility by allocating his time among leisure, market work, and household work so that
a. expected marginal utility is equal among all three b. expected total utility per hour is equal among all three c. expected marginal utility per hour is equal among all three d. the maximum amount of goods and services can be acquired e. expected total utility of each use is equal
The growth in the number of poor families since 1965 has resulted overwhelmingly from a growth in the number of elderly households
Indicate whether the statement is true or false