As long as a market is contestable, then even if it has only a few sellers, ethreatofnewentrantswillpreventthecurrentproducersfromproducinginefficientlyandchargingpricesabovethecompetitivelevel. eproducerswillbeabletochargepricesthatarehighenoughtoproducelong-runeconomicprofits. eproducerswillnotfacenewcompetitionbecausethebarrierstoentryarehigh. emarketwillneverbeexpectedtocomeclosetothecompetitiveresult.
