3.4.7 Contestable Markets (Edexcel A-Level Economics Teaching PowerPoint)

This editable and downloadable PowerPoint covers the economics of contestable markets.

A contestable market is one in which new entrants can easily enter and compete with established firms, even if those firms have significant market share. The idea is that the threat of new competitors entering the market keeps existing firms on their toes, spurring them to be more efficient and competitive, and ultimately leading to lower prices and better products for consumers. Think of it like a never-ending battle royale - new players are always jumping in, and the existing players have to be constantly upping their game to stay in the ring!