Author Question: A single firm in a contestable market is limited in the amount of economic profit it can earn ... (Read 38 times)

Metfan725 · **on:** Jun 29, 2018

A single firm in a contestable market is limited in the amount of economic profit it can earn because there

A) are barriers to entry.
B) are no barriers to entry.
C) is collusion.
D) are government regulations limiting its profit.

Question 2

If a market is shared equally by 200 firms the Herfindahl-Hirschman Index is

A) 12.5.
B) 25.
C) 50.
D) 200.