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In a __________ market, the threat of entry keeps prices low. a.public b.contestable c.competitive d.natural monopoly

In a __________ market, the threat of entry keeps prices low.

a.public

b.contestable

c.competitive

d.natural monopoly

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Answer #1

"C"

In a contestable market the threat of entry of the new firms keep the prices low. natural monopoly and competitive market will not manage the price at all.

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