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