Hey there! Sign in to join this conversationNew here? Join for free

Difference between contestable market and perfectly competitive market Watch

    • Thread Starter
    Offline

    0
    ReputationRep:
    I have a question asking why markets should be made more contestable rather than competitive?

    What is the difference between a contestable market and a competitive market other than the fact that firms in a contestable market are only acting like competitive firms to decrease threat of other firms entering market.

    Thanks
    Offline

    2
    ReputationRep:
    A perfectly competitive market is a contestable market, but a contestable market is not always a perfectly competitive one. Read on:

    http://www.economicshelp.org/diction...le-market.html
    http://www.revisionguru.co.uk/economics/contest.htm
 
 
 
  • See more of what you like on The Student Room

    You can personalise what you see on TSR. Tell us a little about yourself to get started.

  • Poll
    Did TEF Bronze Award affect your UCAS choices?
  • See more of what you like on The Student Room

    You can personalise what you see on TSR. Tell us a little about yourself to get started.

  • The Student Room, Get Revising and Marked by Teachers are trading names of The Student Room Group Ltd.

    Register Number: 04666380 (England and Wales), VAT No. 806 8067 22 Registered Office: International House, Queens Road, Brighton, BN1 3XE

    Quick reply
    Reputation gems: You get these gems as you gain rep from other members for making good contributions and giving helpful advice.