Question

1. On contestable markets What is the difference between "actual competition" and "threat of competition" (also called "potential competition")? Explain your answer. a. Suppose a business is operating in a contestable market. Further, this business charges a price that results in a Lerner Index close to the upper lmit"". What would you predict to happen in this market? Explain your answer b.
Managerial economics

I need clear writing please

Answer 1

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