Which of the following statements about contestable markets is false?

1. A Option A: Participants in a contestable market are continuously faced with competition or the threat of it because entry is cheap.
2. B Option B: In a contestable market, economic profits cannot persist in the long run.
3. C Option C: In a contestable market, competitive forces ensure firms produce efficiently or are driven out.
4. D Option D: For a market to be contestable, the product must be produced with a labour-intensive technology.

Answer checked 11 October 2026 · How we write and check questions