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Revision Presentation on Contestable Markets

Level:
A-Level
Board:
AQA, Edexcel, IB, OCR

Last updated 21 Mar 2021

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How does the threat of competition affect a firm’s behaviour?

This revision presentation looks at the economics of contestable markets

Students should be able to:

  • Understand the characteristics of this market structure with particular reference to the interdependence of firms
  • Explain the behaviour of firms in this market structure
  • Explain reasons for collusive and non-collusive behaviour
  • Evaluate the reasons why firms may wish to pursue both overt and tacit collusion
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