Sky-High Skywriters charges competitive prices for its skywriting services even though it has no competition.This is most likely because

Question

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The fact that the company charges competitive prices even though it has no competition suggests that it is operating in a contestable market. In a contestable market, potential competition plays a role in keeping prices low, even when there are no actual competitors. This is because barriers to entry are low, and new firms could enter the market and compete with existing firms if prices were too high.

Sky-High Skywriters Charges Competitive Prices for Its Skywriting Services Even