Which of the Following Statements Is False

Multiple Choice

Which of the following statements is false?

A) Participants in a contestable market are continually faced with competition or the threat of competition because entry is cheap.
B) In a contestable market with very few competitors market forces will guarantee that the firms produce efficiently or be driven out of business.
C) For a market to be contestable the product must be produced with a labour- intensive technology.
D) In a contestable market economic profits cannot persist in the long run.