Multiple Choice
If a market is contestable, then
A) a cartel will form in the industry.
B) economic profits are small or zero.
C) firms face a vertical demand curve.
D) there is a dominant firm in the market.
E) none of the above
Correct Answer:
Verified
Correct Answer:
Verified
Q123: List and describe the three defining assumptions
Q124: One of the key characteristics of oligopoly
Q125: Concentration ratios are often used to determine
Q126: Why can't an economist say for certain
Q127: The assumption that precludes economic profits in
Q129: If two firms that form a cartel
Q130: Cartels often dissolve because<br>A)their members often set
Q131: In long-run equilibrium, a monopolistic competitive firm
Q132: In long run equilibrium, a monopolistic competitive
Q133: The excess capacity theorem states that a