An Article in the Economist Reported That Prices of CDs

Multiple Choice

An article in The Economist reported that prices of CDs in Britain were much higher than prices in the United States or other European countries.There were only a few major companies, and a report from a Parliament committee said there was no serious price competition.The best explanation for this is that

A) the industry was a contestable market.
B) there were entry barriers in production and distribution of CDs.
C) firms were avoiding profit opportunities.
D) there was substantial differentiation of products.