How do you think the theory of contestable markets has been used as a means of arguing for weaker enforcement of antitrust laws? Explain.

Question

Quizplus · Accepted Answer

The Answer is The theory of contestable markets can be used to argue for weaker enforcement of antitrust laws by observing that a monopoly market may not prove that a firm is exploiting its market power to control the price level since excess profits will quickly lead to entry by new firms.

How Do You Think the Theory of Contestable Markets Has