A market with one or a small number of firms but no barriers to entry is known as
A) a natural monopoly.
B) a contestable market.
C) a perfectly competitive market.
D) monopolistic competition.

Question

Quizplus · Accepted Answer

A contestable market is characterized by the absence of barriers to entry, allowing new firms to enter and compete, even if there are only one or a few firms currently in the market.

A Market with One or a Small Number of Firms