/*! This file is auto-generated */ .wp-block-button__link{color:#fff;background-color:#32373c;border-radius:9999px;box-shadow:none;text-decoration:none;padding:calc(.667em + 2px) calc(1.333em + 2px);font-size:1.125em}.wp-block-file__button{background:#32373c;color:#fff;text-decoration:none} Q.8 What is a barrier to entry? Give... [FREE SOLUTION] | 91影视

91影视

Log out

Learning Materials

Features

Discover

Chapter 9: Q.8 (page 232)

What is a barrier to entry? Give some examples.

Short Answer

Expert verified

The barrier to entry means obstacles faced by firms to enter the market,

it can impose by existing firms or the government.

Step by step solution

01

Step 1. Meaning

Barriers are obstacles that make it very difficult to enter a given market, barriers to entry can be imposed by two means either by existed firm or taxation by the government.

Barrier entry includes:

Government regulations

Strong brand identity

Customer loyalty

Patent protection

Licensing requirement

02

Step 2. example

A company gets a patent for product X for five years means, that no other seller can sell that product X.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Over 30 million students worldwide already upgrade their learning with 91影视!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

Imagine a monopolist could charge a different price to every customer based on how much he or she were willing to pay. How would this affect monopoly profits?

If Congress reduced the period of patent protection from 20 years to 10 years, what would likely happen to the amount of private research and development?

Suppose the local electrical utility, a legal monopoly based on economies of scale, was split into four firms of equal size, with the idea that eliminating the monopoly would promote competitive pricing of electricity. What do you anticipate would happen to prices?

How is intellectual property different from other

property?

How is monopoly different from the perfect competition?
See all solutions

Recommended explanations on Economics Textbooks

Taxation Economics

Read Explanation
View all explanations

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.