Practice Exam Questions
Contestable Markets and Output (MCQ Revision Question)
- Level:
- A-Level, IB
- Board:
- AQA, Edexcel, OCR, IB, Eduqas, WJEC
Last updated 2 Jun 2017
In a contestable market, if the threat of potential entry causes a business to drop profit maximisation as the main aim and choose instead an output that makes a normal profit, what is the consequence for total output? This multiple choice question tests our understanding of this topic.
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