In the absence of natural monopoly conditions,firms in a contestable market will

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In a contestable market, there are low barriers to entry and exit, which means that new firms can enter the market and compete with existing firms. This threat of potential competition encourages firms to operate competitively, setting prices and output levels that are efficient and in line with the costs of production. Therefore, firms in a contestable market are likely to choose their price and output competitively.

In the Absence of Natural Monopoly Conditions,firms in a Contestable