contestable market theory

[RusNad]

economics exam tomorrow! :) good luck and thank mr holden

[lee101legend]

not even gonna lie, this man is a genius, he is such a help with my revision for my economics unit 3 exam, makes things so straight forward and simple.

[MyMrwrestling]

mashallah

[UnlimitedEconZone]

if you give up teaching, 2 things will happen:

-we as students are gonna die due to lack of your videos

-You will make so much money coz of your knowledge

Great job!

[nomoreheroes93]

noo padge can u please make a shorter version of this please i have to present it in class tomorrow x

[UnlimitedEconZone]

@nomoreheroes93 He cant possibly make it any shorter than this lol

[nomoreheroes93]

@UnlimitedEconZone Haha I don't care I'm studying engineering at the University of Warwick now anyway.

[St3ph3nxjg]

well,actually I could pass but not with a high mark ;)

[MyMrwrestling]

@St3ph3nxjg so did u pass

[MyMrwrestling]

@St3ph3nxjg did u pass economics then?

[St3ph3nxjg]

thanks so much for ur videos

I believe I couldn't pass the exams without ur supports.

many thanks !!!!!

[henryhitchcox]

Hi there,

I would like to thank you for you videos, very helpful as an alternative to on text revision.

I would like to put forward a comment that I believe in some cases marketing costs are not sunk costs. If a percentage of the marketing budget is spend on advetising the brand image/name rather than the specific product, the brand could fail in an industry yet gain from the awareness of the name. For example Virgin marketing their cola, it did not sell but increase the awareness of 'Virgin'.

[PocketJokersdotCom]

@henryhitchcox might have made virgin look worse as the product failed.

Anyway they are still sunk becase you cannoy recover them. You can have successful sunk costs, but they are sunk costs non the less

[RemingtonSAXMAN]

Hi I would like to thank you for this video it has really helped me but I have a question for the subject at 1:58

the incumbent monoplists appeal as a limit pricer to consumers provides a substantial barrier to entry in terms of competition to potential new entrants no? This barrier to entry then counteracts its contestability?The limit price strategy would surely provide some level of brand loyalty and therefore a barrier to entry?

Please comment, correct me if Im talking nonsense Thanks

[PocketJokersdotCom]

@RemingtonSAXMAN If a new firm was to enter and under cut the limit price would consumers change? That is the question. They do = contestable They dont = not so contestable if at all

as he said it is all about degrees.

[st6a14]

this helps me soooo much for my economic course thank you!

[ne1l007]

Good video. I will like to correct you by giving a better example of "sunk costs", i would say fixed costs are an example of this. In contestable market there is a THREAT of competiton, that force the incubent firm to act efficiently and produce allocative and productive effieicny in an industy, comtestable markets need to be REGULATED, to make sure they do not exploit firms.

[tawandachristopher]

took me a while however i understand

[MyMrwrestling]

@tawandachristopher explain to me plz still dont understand

[Kr15S]

Awesome video, especially like the high quality version, very cool. You make for a wise professor, keep putting your knowledge to good use!