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Which of the Following Is Not a Condition of a Contestable

Question 34

Multiple Choice

Which of the following is not a condition of a contestable market?


A) There is easy entry into and costless exit from the market.
B) New firms entering the market can produce the product at the same cost as current firms.
C) Firms exiting the market can easily dispose of their fixed assets by selling them elsewhere.
D) New firms entering the market produce a higher-quality product than existing firms.

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