Absence of barriers preventing entry or exit from markets
The core principle defines perfect mobility in market structures where firms face zero transaction costs and legal restrictions regarding capital or labor entry/exit. This condition establishes the theoretical boundary between contestable markets and those with structural inefficiencies, operating strictly within the domain of neoclassical microeconomic theory. It serves as a foundational axiom for analyzing dynamic competition models where long-run equilibrium is driven by free movement rather than fixed barriers.
D
Demerzel
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Absence of barriers preventing entry or exit from markets (depth chain)
Prerequisite chain context: requires Perfect Competition Market Structures in Microeconomics.