Which of the following statements is TRUE about contestable markets?
A) There are significant barriers to entry.
B) Firms earn large economic profits.
C) Each firm faces a perfectly elastic demand.
D) There are few firms in the industry.
D
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The false paradigm model attributes lack of development to
a. inadequate attention to price incentives. b. inappropriate advice from rich country economists. c. low levels of savings and investment. d. a lack of government regulation.
"Price discrimination is the same as price differentiation." Do you agree or disagree? Why?
What will be an ideal response?
Which of the following describes the market structure of monopoly?
a. many firms with some control over price, and considerable product differentiation b. many firms with no control over price, producing identical products with no differentiation c. a few firms with some control over price, producing similar products which are close substitutes d. a few firms with no control over price, producing highly differentiated products e. a single firm producing all of the output for the industry
Define the three main categories of businesses
Please provide the best answer for the statement.