An airline can easily move its aircraft from one route to another.One interpretation of this is that the airline industry is an example of a contestable market.

Question

Quizplus · Accepted Answer

Contestable markets are markets where there are no barriers to entry or exit, making it easy for new firms to enter or for existing firms to exit the market. In the airline industry, airlines can easily move their planes from one route to another, and there are no significant barriers to entry or exit. Therefore, the airline industry is an example of a contestable market.

An Airline Can Easily Move Its Aircraft from One Route