Practice mode Profit Maximizing Under Perfect Competition And Monopoly

In contestable markets, how do large oligopolistic firms end up behaving?

Correct answer D. Like perfectly competitive firms

Explanation

If entry and exit are costless, any price above cost invites hit-and-run entrants, so even a few large firms are forced to price like perfectly competitive firms.

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In contestable markets, how do large oligopolistic firms end up behaving?

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In contestable markets, how do large oligopolistic firms end up behaving?

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