Economics 9708 · AS & A Level · 7.6

7.6 — practice question

What does the observation that an industry is contestable suggest?

  • ABarriers to entry make little difference to a firm’s monopoly power.
  • BFirms in the industry can earn abnormal profits in the long run.
  • CInefficient firms can survive in the industry in the long run.
  • DMonopoly power is not necessarily exploited.

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