Economics B A-Level
Perfectly contestable market
What Perfectly contestable market means in Economics B A-Level, as defined for Pearson Edexcel.
Definition of Perfectly contestable market
Check what you remember
Read the wording for your board, then hide it and explain Perfectly contestable market in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: Pearson Edexcel
A market with no barriers to entry or exit, meaning sunk costs are zero and new entrants have access to the same technology as incumbent firms.
Topics that use Perfectly contestable market
- Barriers to entry (Pearson Edexcel A-Level)
Related terms
- Barriers to entry
- Competitive advantage
- Economies of scale
- Market structure
- Monopoly power
- Contestability
- Intellectual property rights
- Limit pricing
Using Perfectly contestable market in the exam
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