4.1.5.9 Contestable markets notes

4.1.5.9 Contestable markets notes

Professional Development

14 Qs

quiz-placeholder

Similar activities

Perfect Competition

Perfect Competition

KG - Professional Development

10 Qs

4.1.5.8 Dynamics of Competition notes

4.1.5.8 Dynamics of Competition notes

Professional Development

15 Qs

3.1.4.1 Market Structures

3.1.4.1 Market Structures

Professional Development

10 Qs

Production Cost and the Perfect Competition Model

Production Cost and the Perfect Competition Model

Professional Development

13 Qs

MGT30005. Week 4

MGT30005. Week 4

Professional Development

9 Qs

Quiz Hunt round 1

Quiz Hunt round 1

University - Professional Development

15 Qs

BA ECONOMICS

BA ECONOMICS

University - Professional Development

16 Qs

Economics 2

Economics 2

Professional Development

9 Qs

4.1.5.9 Contestable markets notes

4.1.5.9 Contestable markets notes

Assessment

Quiz

Social Studies

Professional Development

Medium

Created by

James Hannaford

Used 3+ times

FREE Resource

14 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What does market contestability refer to?

How easily new firms can enter and exit a market

The regulatory policies affecting the market

The profit margins that existing firms enjoy

The number of products available in the market

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following is a benefit of highly contestable markets?

Efficiency boost in firms

Reduced innovation

Higher barriers to entry

Increased monopoly power

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What impact do contestable markets have on consumer welfare?

Increased exploitation by dominant firms

Encouragement of competitive pricing and quality

Limited consumer choices

Decreased product quality

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How do contestable markets influence innovation?

They prevent new firms from entering the market

They lead to a decrease in new product development

They spur innovation and technological advancement

They discourage technological advancement

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What role does market contestability play in entrepreneurship?

It has no impact on entrepreneurship

It discourages new business ventures

It encourages entrepreneurship and new business ventures

It increases the financial risks for startups

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What are sunk costs?

Operational costs that are variable

Costs that have already been incurred and cannot be recovered

Future expenses that are expected to be incurred

Profits made from previous investments

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is hit-and-run competition?

A method to permanently lower market prices

A long-term market entry strategy

A strategy where new entrants quickly enter and exit the market

A regulatory approach to control market entry

Create a free account and access millions of resources

Create resources
Host any resource
Get auto-graded reports
or continue with
Microsoft
Apple
Others
By signing up, you agree to our Terms of Service & Privacy Policy
Already have an account?