In a contestable market A) the HHI is usually quite low. B) ...

[NguyenJ]

In a contestable market
 
  A) the HHI is usually quite low.
  B) the firm in the market usually earns a large economic profit.
  C) the firm in the market may play an entry-deterrence game.
  D) there are high barriers to entry.

Question 2

The principle of minimum differentiation reflects the
 
  A) tendency for firms to produce at minimum marginal cost in order to compete with one another.
  B) tendency for political parties to make themselves identical to appeal to the median voter.
  C) concept of minimizing the difference between total benefit and total cost to produce efficiently.
  D) attempt to minimize the free-rider problem.

[AmberC1996]

Answer to Question 1

C

Answer to Question 2

B