Hit and run competition

hit and run competition

occurs when a firm temporarily enters a market and then leaves when supernormal profits are exhausted

normal, long-run

In hit and run competition, if a market is contestable, firms will make only _____ profit in the ____-___

supernormal, enter, normal, existing, up, return, potential, low

If firms make _________ profit → hit and run competition will _____ the market

→ driving down profits to ______ profits → ______ firms know that if they put ___ prices

→ hit and run competition will ______ → so the _______ for competition keeps prices ___

filler

filler