Which of the following statements is False?

1958EconomicsMedium

AIn a contestable market forces will guarantee that the firms produce efficiently or be driven out of business

BFor a market to be contestable, the product must be produced with a labor-intensive technology

CIn a contestable market, economic profits cannot persist in the long run.

Dparticipants in a contestable market are continuously faced with competition or the threat of competition because entry is cheap

Correct answer

B. For a market to be contestable, the product must be produced with a labor-intensive technology

Explanation

The correct answer is For a market to be contestable, the product must be produced with a labor-intensive technology.

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