Of the following, the best example of firm that might operate in a contestable market is a
A) cable TV company.
B) wheat farmer.
C) ship owner operating on a major waterway.
D) private college operating in a state with many public colleges.

Question

Quizplus · Accepted Answer

A ship owner operating on a major waterway is likely to be in a contestable market because there are low barriers to entry and exit, allowing potential competition to easily enter the market if profits are high.

Of the Following, the Best Example of Firm That Might