Economics 9708 · AS & A Level · 7.6

7.6 — practice question

What condition has to be satisfied before a market may be considered perfectly contestable?

  • AAll firms in the industry are price-takers.
  • BAll firms in the industry produce an identical product.
  • CThere are a large number of firms in the industry.
  • DThere are zero costs of entry to, and exit from, the industry.

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