In a contestable market, how must existing companies act to prevent new competitors from entering?

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operate as if in a perfectly competitive marketcollaborate with each othermake their products distinctuse price discrimination strategies

Explanation

In contestable markets, incumbent firms need to behave like competitive firms to deter potential entrants. This means they must price and act in ways that make entry unattractive, rather than relying on collusion, product differentiation, or price discrimination.