What makes a market contestable?
What makes a market contestable?
A contestable market has low barriers to entry and exit. Existing firms are disciplined by the credible threat of new competition, even if no new firm has entered.
Step-by-step lessons covering AQA A Level Economics 1.5.9 Contestable and non-contestable markets (A-level only) for A Level Economics. Each lesson works through exam-style questions in Paper 1, Paper 2 and Paper 3 format. Start with the core supply-and-demand models before moving on to the more evaluation-heavy macroeconomic policy topics.