When a market is contestable, incumbent firms must __________ to avoid the entry of new competitors?

Related Mcqs:

A decrease (leftward shift) in the supply for a good will tend to cause ?

A. an increase in the equilibrium price and quantity B. a decrease in the equilibrium price and an increase in the equilibrium quantity C. none of these answers D. a decrease in the equilibrium price and quantity. E. an increase in the equilibrium price and a decrease in the equilibrium quantity...

If the market price is below the equilibrium price ?

A. quantity demanded will be greater than quantity supplied B. quantity demanded will be less than quantity supplied C. demand will be less than supply. D. quantity demanded will equal quantity supplied ....

Moral hazard means that the act of insuring ____ that the desired outcome will occur?

A. reduces the likelihood B. increases the likelihood C. guarantees D. none of the above...

Suppose consumer tastes shift toward the consumption of apples Which of the following statements is an accurate description of the impact of this event on the market for apples ?

A. There is an increase in the quantity demanded of apples and in the supply for apples B. There is an increase in the demand and supply of apples. C. There is an increase in the demand for apples and a decrease in the supply of apples D. There is a decrease in the quantity … Suppose consumer tastes shift toward the consumption of apples Which of the following statements is an accurate description of the impact of this event...

A positive externality occurs when ?

A. The social marginal costs are higher than the private marginals costs B. A product is not provided in the free market C. The social marginal cost equal the social marginal benefit D. The social marginal benefits are higher than the private marginal benefits...