A contestable market is one in which A) one dominant firm sets ...

[asan beg]

A contestable market is one in which
 
  A) one dominant firm sets the market price, and all other firms are price takers.
  B) if a firm cuts its price, all other firms will follow the price cut.
  C) one or a small number of firms operate, but faces competition from potential entrants.
  D) a group of firms enter into an agreement to restrict output and raise prices.

Question 2

Tom spends 20 a month on CDs and magazines. The price of a CD is 6 and the price of a magazine is 4. When Tom maximizes his utility, the marginal utility from CDs is ________ the marginal utility from newspapers.
 
  A) the same as
  B) 1/2
  C) 20 times
  D) 1 1/2 times

[Sweetkitty24130]

Answer to Question 1

C

Answer to Question 2

D