3752. Which of the following statements is False?

A. participants in a contestable market are continuously faced with a competition or the threat of competition because entry is cheap
B. In a contestable market, economic profits cannot persist in the long run.
C. In a contestable market, forces will guarantee that the firms produce efficiently or be driven out of business
D. For a market to be contestable, the product must be produced with a labor-intensive technology
✅ The correct answer is option D.

Leave a Comment

Your email address will not be published. Required fields are marked *