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3.4.7 Contestability
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What Is a Contestable Market?

What Is a Contestable Market?

A contestable market is disciplined by the threat of new entry rather than by the number of firms currently operating. Even a market with one incumbent can be competitive if a rival can enter easily, earn profit and leave without losing much money.

3.4.7 Contestability Lesson

  1. A Level
  2. /Economics
  3. /3.4.7 Contestability

Step-by-step lessons covering Edexcel A A Level Economics 3.4.7 Contestability 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.