Which of the Following Statements About Contestable Markets Is False

Multiple Choice

Which of the following statements about contestable markets is false?

A) The higher the entry costs to the industry, the greater the threat of competition.
B) If there is potential competition, a monopolist may be forced to behave as if it were in a competitive market.
C) The lower the exit costs from the industry, the greater the threat of competition.
D) The threat of competition has a similar effect to actual competition.
E) Monopolies may remain because of economies of scale and the size of the market.