In a perfectly contestable market, inefficiency does not exist. Explain why.
Question:
In a perfectly contestable market, inefficiency does not exist. Explain why.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (QA)
Answer In a perfectly contestable market inefficiency does not exist because perfect competition and ...View the full answer
Answered By
PALASH JHANWAR
I am a Chartered Accountant with AIR 45 in CA - IPCC. I am a Merit Holder ( B.Com ). The following is my educational details.
PLEASE ACCESS MY RESUME FROM THE FOLLOWING LINK: https://drive.google.com/file/d/1hYR1uch-ff6MRC_cDB07K6VqY9kQ3SFL/view?usp=sharing
3.80+
3+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business 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...
-
Why must companies that publicly issue securities file a prospectus with the SEC? What does the SEC's acceptance of the prospectus imply?
-
Find the number of ways to arrange the letters \ (a, b, c\), and \(d\).
-
Consider the following transactions that occurred in September 2012 for Aquamarines, Inc. Sep 3 Purchased inventory on terms 1/15, n/eom, $5,000. 4 Purchased inventory for cash of $1,700. 6 Returned...
-
Section 2 3 0 5 amount for 2 0 2 4 is $ 1 8 , 0 0 0 . Ann created an irrevocable trust funded with $ 6 0 0 , 0 0 0 . Ann All income to Bob for life ( distributed annually, Bob is 7 0 years old )...
-
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.
-
The working floors of over 25,000 Starbucks stores in more than 75 countries are connected to the corporate top of the organization by inclusive policies like giving full benefits to part-time...
-
Prove that, if X1, ..., X, are i.i.d. random variables with E[X] = and Var[X] = 0, -1 and X = n1X, then E[X] = and Var[X] = 0/n.
-
Materials costs of $896000 and conversion costs of $1121760 were charged to a processing department in the month of September. Materials are added at the beginning of the process while conversion...
-
Was the ending of the production of the world's first jumbo jet in January 2023 a good or bad move for Boeing and aviation in general? After watching https://www.youtube.com/watch?v=4Ht1ogFUBLc
-
What is the key problem in the case study Under Armour: Creating and Growing a New Consumer Brand. What are two solutions to the problems. What are advantages and disadvantages.
-
How do macroeconomic factors such as interest rates and exchange rates impact consumer purchasing power and market dynamics?
-
Why is the hierarchical planning process useful for project planning? How might it influence the plan if the hierarchical planning process was not used?
-
Open Text Corporation provides a suite of business information software products. Exhibit 10-9 contains Note 10 from the companys 2013 annual report detailing long-term debt. Required: a. Open Text...
-
Accounts receivable accounts for specific customers are important because they show a How much each customer purchases b How much each customer has paid c How much each customer still owes d All of...
-
Punyain Company acquired Sallsap Corporation on January 1 , 2 0 X 1 , through an exchange of common shares. All of Sallsap's assets and llabilities were immediately transferred to Punyain, which...
-
( a ) Prepare the adjusting entries for items i to v above ( b ) Prepare the statement of profit or loss for the year ended 3 1 Dec 2 0 x 0 and the appropriation of profit for the partnership....
Study smarter with the SolutionInn App