A contestable market is a market

A) that is highly contested by two, and only two, rival firms.
B) in which the costs of entry and exit are low.
C) characterized by high profitability and government regulation.
D) characterized by a large number of firms; in essence, the term means the same thing as pure competition.

Contestable Market

A market where companies can enter and exit freely, with low barriers to entry and exit, leading to competitive prices and efficient outcomes.

Low Entry And Exit

Refers to markets where there are minimal barriers to starting or exiting a business, leading to high levels of competition and innovation.

Highly Contested

Describes a situation, item, or issue that is the subject of intense competition or dispute among parties.