The market for airplane service on a particular route is a commonly cited example of

Question

Quizplus · Accepted Answer

A contestable market refers to a market with low barriers to entry and exit, which allows for new firms to enter and compete with existing firms. The market for airplane service on a particular route can be a contestable market because it may have low barriers to entry for new airlines to start operating on that route, which keeps the existing firms on that route competing to offer the best service and pricing to attract passengers. It is not an example of resale price maintenance, monopolistic competition, or the benefits of vertical integration.

The Market for Airplane Service on a Particular Route Is