Author Question: What is necessary for a firm to be part of a perfectly contestable market? What will be an ideal ... (Read 73 times)

tfester · **on:** Jun 29, 2018

What is necessary for a firm to be part of a perfectly contestable market?

What will be an ideal response?

Question 2

If real GDP increases from 5 billion to 5.25 billion and the population increases from 2 million to 2.02 million, real GDP per person increases by ___ percent.

A. 5.0
B. 1.0
C. 2.5
D. 4.0

Heffejeff · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

To be part of a perfectly contestable market, the firm must have capital that is both mobile and easily transferable from one market to another.

Answer to Question 2

D Real GDP grows by 5 percent and the population grows by 1 percent, so real GDP per person grows by 4 percent.