Difference between revisions of "Perfectly contestable markets"
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Latest revision as of 22:19, 24 February 2013
Perfectly contestable markets are markets with no barriers to entry and extremely low startup costs. Because the market is so easy to get into, the prices stay very low. If they were raised, someone would sell the same product at a lower price, because the market is so easy to get started in. Businesses like newspaper stands are an example.