How do we know when a market is contestable?
What will be an ideal response?
A market is contestable when barriers to entry are low. Economic profits encourage new entrants into a market. If they can succeed, then the market is contestable and the market power of the incumbent firm will be diminished.
Economics
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Moving along the aggregate supply curve,
A) the quantity of capital used increases. B) technology advances. C) the stock of human capital increases. D) only the price level changes. E) the real wage rate is constant.
Economics
How has the pattern of trade changed in the United States since 1960? What are the types of goods that are causing the shift in the balance of imports and exports in the United States?
What will be an ideal response?
Economics