In a perfectly contestable market, inefficiency does not exist. Explain why.

Question:

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Economics

ISBN: 9781473768543

5th Edition

Authors: Gregory Mankiw, Mark P. Taylor

See More Books

Question Posted: Apr 25, 2024 01:01 AM

See More Questions

The low-cost airline business is often cited as an example of a highly contestable market. To what extent do the assumptions of a perfectly contestable market apply to the low-cost airline industry...
A perfectly competitive market is by definition perfectly contestable, but a perfectly contestable market is not necessarily a perfectly competitive market. Comment on this statement.
CANMNMM January of this year. (a) Each item will be held in a record. Describe all the data structures that must refer to these records to implement the required functionality. Describe all the...
In the Walton Bookstore example with a discrete demand distribution, explain why an order quantity other than one of the possible demands cannot maximize the expected profit.
Presume that Litely carries a modern white kitchen ceiling lamp that is quite popular. The anticipated demand during lead time can be approximated by a normal curve having a mean of 180 units and a...
Michael Oil Company operates Leases X and Y. Michael Oil transfers 60 barrels of oil from Lease X to Lease Y to be used as fuel on Lease Y. The current spot oil price is $110/bbl, and the severance...
International Business Machines Corporation (IBM) was once the dominant computer manufacturer intheworld and, from 1960 to 1980, the leading growth company. Indeed, in those years IBM became the...
Hazel Holden and Cedric Dalton are organizing Calgary Metals Unlimited Inc. to undertake a high-risk gold-mining venture in Canada. Hazel and Cedric tentatively plan to request authorization for...
how do the two segments identified by Jenny for Colomco frozen yogurt sales differ from each other? can you try this please? thanks Mini-Case w 12 USING A CHUR ACTIVITY EASED MAN Clarke ating the...
Why do regulators face a trade-off between competitiveness and the benefit of economies of scale in imperfectly competitive markets?
Explain why only normal or zero economic profits are possible in a perfectly contestable market.
Decision D4, which has three possible alternativesx , y , or z must be made in year 3 of a 6-year study period in order to maximize the expected value of present worth. Using a rate of return of 15%...
Why do you think diversity is important to organizations and what can a do to increase diversity in leadership? What is Servant Leadership? How can you apply this in your life? What is effective team...
How do you envision overcoming any potential resistance or skepticism from your colleagues in the vet tech field as you introduce these transformative strategies, and what steps do you think will be...
Managers encourage employees to do misleading activities such as speak falsehood and deceive customers which is clearly visible in the statement in the case " Sales are everything" wherein an...
Your Topic is "Why do you think there are so few people who succeed at both management and leadership? Is it reasonable to believe someone can be good at both?" Locate two to three articles about...
Explain the various benefits associated with professional networking. Also, expand on your answers how those would benefit you personally. PLEASE DO FAST AND CORRECT need correct answer
A standing wave is formed in a stretched string that is 3.0 m long. What are the wavelengths of (a) The first harmonic and (b) The second harmonic?
1. Which of the four major types of information systems do you think is the most valuable to an organization? 2. How do you critically associate the ideas of business agility and business efficiency...
Construction of consumer price index number for the given goods and services. Item Weight in % Base period price Current period price Food 35 150 145 Fuel 10 25 23 Cloth 20 75 65 Rent 15 30 30 Misc....
Gammaro Corporation has found that 80% of its sales in any given month are credit sales, while the remainder are cash sales of the credit sales, Gammaro Corporation has experienced the following...
Swifty Company estimates that 2022 sales will be $43,200 in quarter 1,$51,840 in quarter 2 , and $62,640 in quarter 3 , Cost of goods sold is 50% of sales. Management desires to have ending...

In a perfectly contestable market, inefficiency does not exist. Explain why.

Question:

Step by Step Answer:

Answer In a perfectly contestable market inefficiency does not exist because perfect competition and ...View the full answer

Economics

Students also viewed these Business questions