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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

Correct Answer: For a market to be contestable, the product must be produced with a labor-intensive technology

Last Updated: June 18, 2019