Output and pricing performance of firms

Contestable markets theory recommends that even though an industry has only one producer, in that case the output and pricing performance of which firm will resemble which of a competitive industry as long like: (1) there are numerous active buyers in the market. (2) the firm’s output is homogeneous. (3) entry and exit are relatively costless in the long run. (4) the firm feels threatened by the possibility of antitrust action. (5) barriers to entry are ensured by the government.

Can anybody suggest me the proper explanation for given problem regarding Economics generally?

View Complete Question

Related Questions in Microeconomics

Q : Laws and regulations for competitive

Government regulation intends at certain potentially competitive prices or transactions frequently induce private adjustments through firms and individual therefore unexpected results comprise: (w) increased rates of growth of tax revenues. (x) rapid

Q : Rate of return on financial assets The

The rate of return on financial assets tends to be negatively associated to: (w) probability of default. (x) liquidity. (y) risk. (z) time to maturity. Please guys help to solve this problem of Economics

Q : How is a shift in demand reflected in a

How is a shift in demand reflected in a demand equation? How is a shift in supply reflected in a supply equation? How is a movement along a demand (supply) curve reflected in a demand (supply) equation?

Q : Decreased market demand for generic 2×4s

Decreased market demand for generic 2×4s as in illustrated graph would result within a(n) ___________ into the price of 2×4s as well as a(n) ___________ in this lumber mill’s profit-maximizing output. (w) increase; decrease. (x) incr

Q : Find elastic demand when price and

When the price of Kellogg's Corn Flakes goes up from $1.89 to $2.05 as well as quantity demanded changes from 250 to 210, in that case the demand for Kellogg's Corn Flakes: (w) unitary elastic. (x) relatively inelastic. (y) relatively

Q : Price elasticities for market demand

Of the given price elasticities [ed] for market demand curves, there the one which is absolutely implausible by the vantage of standard economic theory would be one for that, across all conceivable ranges of prices: (1) ed= 0 and the

Q : What is fiscal deficit Fiscal deficit :

Fiscal deficit: When TE (RE + CE) > TR (RR + CR) of the government, excluding borrowing. It is termed as fiscal deficit.

Q : Limitation of price elasticities of

Price elasticities of supply and demand do NOT: (w) reflect desperation for goods and customers by buyers and sellers, respectively. (x) rise as the time period considered is expanded. (y) find out the economic incidence of a tax. (z) find out the leg

Q : Problem on Budget constraints James and

James and Louisa each have an income of $30, which they each spend on tomatoes and all other goods. They buy tomatoes at their local farmers market, which charges $3 per pound. Define the units for all other goods so that their price is $1 per unit.

Q : On which point demand appears to be

On this demonstrated figure of demand curve for DVD games, demand appears to be approximately unitarily elastic at: (w) Q = O, P = $50. (x) Q = 10, P = $O. (y) Q = 5, P = $25. (z) No point on the demand curve.

Discover Q & A

Leading Solution Library

Avail More Than 1433677 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1928819
Asked

3,689

Active Tutors

1433677

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment