A contestable market is one in which
A) one dominant firm sets the market price, and all other firms are price takers.
B) if a firm cuts its price, all other firms will follow the price cut.
C) one or a small number of firms operate, but faces competition from potential entrants.
D) a group of firms enter into an agreement to restrict output and raise prices.
C
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Of the following market structures, which is the least competitive?
A) perfect competition B) monopolistic competition C) monopoly D) oligopoly
The formula for the slope across an arc is used to approximate the slope for
A) linear relationships only. B) a curved line. C) a positive relationship only. D) a negative relationship only.
Suppose that the government wants to increase income without changing the interest rate. How can they accomplish this?
a. Increase government spending and reduce the money supply. b. Increase government spending and the money supply. c. Increase taxes and the money supply. d. Reduce government spending and increase the money supply.
The monopsonist's labor supply curve is the same as the:
a. wage rate. b. marginal revenue product curve. c. marginal product curve. d. market labor demand curve. e. market labor supply curve.