Practice Exam Questions
Contestable Markets and Output (MCQ Revision Question)
- A-Level, IB
- AQA, Edexcel, OCR, IB, Eduqas, WJEC
Last updated 2 Jun 2017
In a contestable market, if the threat of potential entry causes a business to drop profit maximisation as the main aim and choose instead an output that makes a normal profit, what is the consequence for total output? This multiple choice question tests our understanding of this topic.