A market in which the costs of entry and exit are low is called a

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A market in which the costs of entry and exit are low is called a contestable market. This is because the ease of entry and exit allows for new firms to enter the market and compete, which can provide checks and balances to any existing firms that may have a monopoly position. In a contestable market, the threat of potential entry by new firms can keep prices low and encourage innovation.

A Market in Which the Costs of Entry and Exit