Skip to content

Course home

x
Sign up
x

What makes a market contestable?

What makes a market contestable?

Causal-flow diagram contrasting how low and high sunk costs affect entry threats, prices, and profits

A contestable market is disciplined by the threat of new entry, rather than by the number of firms already operating. Even a monopolist may behave competitively if rivals can enter and leave easily.

3.4.7 Contestability Lesson

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

Step-by-step lessons on Edexcel A A Level Economics 3.4.7 Contestability. Each one builds up to exam-style questions. Start with the core supply-and-demand models before moving on to the more evaluation-heavy macroeconomic policy topics.

Lessons