Question

Contestable markets true or false: if a firm is operating in a contestable market, it should operate at the efficient production level and earn zero profit. true false the contestable market model has important policy implications. if there is concern that a market is not sufficiently competitive, what can policymakers do to increase competition in a given industry

Answer 1

The answer is true. The contestable market is a market in which the expenses of section and exit are low, so there is a little hazard to another firm from entering. The risk of passage will train firms such that it should constrain them to create at an effective level and accuse a value reliable of zero benefits.