In economics, we refer to a situation in which there is only one firm but no real barriers to entry as a contestable market.
In economics, contestable means that a company may be challenged by rival companies which look to enter the industry and market. A contestable market is a type of market where companies can enter and leave freely with a cost that is low which makes no real barriers.
In general situations, a contestable market is one having particular firms facing zero entry as well as exit costs. There are no barriers to entry and exit, such as sunk costs and agreements. For a perfectly contestable market, relevant industry technology should be available to entrants which is potential.
A contestable statement, claim and the legal decision can be one that is possible to argue about has changed because it can be wrong. It is ready to form a cartel with other particular large firms and may charge prices more than the cost as when a monopoly operates in a contestable market.
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