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