Actual and potential competition
Actual and potential competition
A contestable market is one where the threat of entry disciplines the firms already inside it. Even a market with one seller can behave more competitively if new firms can enter and leave easily.
Step-by-step lessons on OCR A Level Economics Contestable markets. 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.