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Contestable Markets and Output (MCQ Revision Question)

Level:
A-Level, IB Diploma
Board:
AQA, Edexcel, Eduqas, IB, OCR, WJEC

Last updated 2 Jun 2017

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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.

Contestable Markets and Output (MCQ Revision Question)
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