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
Related Mcqs:
- Which statement is False ?
A. Fixed costs are zero if the firms is producing nothing.
B. Fixed costs are the difference between total costs and total variable costs
C. There are no fixed costs in the long run
D. Fixed costs do not depend on the firm’s level of output - Which of the following statements best describes the outcome under monopolistic competition ?
A. In monopolistic competition, there are too many firms and each firm produce a slightly different product at a scale that is less than optimal
B. In monopolistic competition there are too few firms and each firm produce a slightly different product at scale that is greater than optimal
C. in monopolistic competition there is the correct number of firm and each firm produces a slightly different product at an optimal scale.
D. In monopolistic competition there are too many firms and each firm produce a slightly different product at the optimal scale - Which of the following statements best describes the outcome under monopolistic competition ?
A. It is efficient because the right amount of output is produced, but not efficient in that the output produced is produced at a cost above minimum average total cost
B. It is efficient because entry is free and economic profits are eliminated in the long run.
C. It is not efficient because too little output is produced and the output that is produced is produced at a cost above minimum average total cost
D. It is not efficient because too little output is produced but is efficient in that the output produced is produced at minimum average total cost. - Which of the following statements about economic fluctuations is true ?
A. None of these answers
B. A depression is a mild recession
C. A variety of spending income, and output measures can be used to measure economic fluctuation because most macroeconomic quantitties tend to fluctuate together
D. A recession is when output rises above the natural rate of output - Which of the following statements supports deregulation of industries ?
A. Technological change has made it possible for many industries to become more competitive
B. Because few real natural monopolies exist, there is rarely a reason for government regulation.
C. Many instances of government regulation have succeeded in reducing competition in industries where competition may be beneficial
D. All of the above - Which of the following statements about price and marginal cost in competitive and monopolized markets is true ?
A. In competitive markets, price equals marginal cost, in monopolized markets price exceeds marginal cost.
B. In competitive markets price equals marginal cost, in monopolized markets price equals marginal cost
C. In competitive markets price exceeds marginal cost, in monopolized markets price exceeds marginal cost
D. In competitive markets price exceeds marginal cost in monopolized markets price equals marginal cost - Which of the following statements supports deregulation of industries ?
A. Technological change has made it possible for many industries to become more competitive
B. Because few real natural monopolies exist there is rarely a reason for government regulation
C. Many instances of government regulation have succeeded in reducing competition in industries where competition may be beneficial
D. All of the above - Roberto and Thomas live in a university hall of residence Roberto values playing loud music at a value of €100. Thomas values Pease and quiet at a value of €150. Which of the following statements is true ?
A. It is efficient for Roberto to stop playing loud music regardless of who has the property right to the level of sound
B. it is efficient for Roberto to continue to play loud music
C. It is efficient for Roberto to stop playing loud music only if Thomas has the property right to peace and quiet
D. It is efficient for Roberto to stop playing loud music only if Roberto has the property right to play loud music - Which of the following statements regarding the market for foreign currency exchange is true ?
A. An increase in Pakistan’s net exports decreases the supply of rupees and the rupees depreciates
B. An increase in Pakistan’s net exports increase the demand for rupees and the rupees appreciates
C. An increase in Pakistan’s net exports increases the Supply of rupees and the rupees depreciates
D. An increase in Pakistan’s net exports decrease the demand for rupees and the rupees appreciates - Which of the following statements about trade policy is true ?
A. A country’s trade policy has no impact on the size of its trade balance
B. None of these answers
C. A restrictive import quota decreases a country’s net exports
D. A restrictive imports quota increases a country’s net exports
