Only answer if you are 100% sure 37. As long as a market is contestable,then eve

Question

Only answer if you are 100% sure 37.   As long as a market is contestable,then even if it has only a few sellers, the A.   threat of new entrants will preventthe prices from rising above the competitive level. B.   producers will be able to chargeprices that are high enough to produce long-run economicprofits. C.   producers will not face newcompetition because the barriers to entry are high. D.   market will never be expected to comeclose to the competitive result. Only answer if you are 100% sure 37.   As long as a market is contestable,then even if it has only a few sellers, the 37.   As long as a market is contestable,then even if it has only a few sellers, the

Explanation / Answer

However, if entry is not easy, but there are significantbarriers to entry, the threat of competition isless. Barriers to entry exist when there are sunkcosts, expenses which cannot be recovered once a firm hasentered the industry. Where these

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