3.3.3.8b - Implications of contestable markets for behaviour of firms on: • profitability •

Implications of contestable markets for behaviour of firms on:; profitability; pricing decisions (limit pricing).

Use b - implications of contestable markets for behaviour of firms on: • profitability • to connect the rule to the data and decision in the question.

This matters because b - implications of contestable markets for behaviour of firms on: • profitability • determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - implications of contestable markets for behaviour of firms on: • profitability • to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - Implications of contestable markets for behaviour of firms on: • profitability • is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.