MCQOPTIONS
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| 1. |
Which of the following statements is False ? |
| A. | participants in a contestable market are continuously faced with competition or the threat of competition because entry is cheap |
| B. | In a contestable market, economic profits cannot persist in the long run. |
| C. | In a contestable market forces will guarantee that the firms produce efficiently or be driven out of business |
| D. | For a market to be contestable, the product must be produced with a labor-intensive technology |
| Answer» E. | |