In a contestable market the costs of entering and leaving the market are very

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Quizplus · Accepted Answer

In a contestable market, the barriers to entry and exit are low, which means firms can easily enter or leave the market without incurring significant costs. As a result, new firms can enter the market and compete with existing firms, putting pressure on them to keep their prices low and improve their quality. Similarly, existing firms can leave the market if they are unable to compete effectively. Therefore, the costs of entering and leaving the market are low.

In a Contestable Market the Costs of Entering and Leaving