In your opinion, is the concept of contestable markets realistic?

State reasons for your

answer. If realistic, what market is a good example or is the closest?

A perfectly contestable market is not possible in real life.There is a degree of contestability of

a market. For a perfectly contestable market, entry into and exit out must be costless.In recent
years a growing number of markets and industries have become genuinely contestable.An
economic downturn can have the effect of opening up markets to new businesses.There can
be low barrier to entry and exit . there are very few markets which are completely free of
sunk costs and entry and exit barriers.A major barrier to exit is sunk costs. Sunk costs will be
low where the firm can sell or in other ways dispose of its capital equipment without cost.
chopper services for ride in city that can be possible with low sunk cost , because even if they
want to exit market they can give chopper on rent to other industry . they can earn high profit
by providing low cost services .if they already have chopper and ground facility there will be
no entry cost . only promotional expense will occur.