ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -What are Barriers to Entry? Barriers to entry are the obstacles or hindrances that make it difficult for new companies to enter a given market. These may include technology challenges, government regulations, patents, start-up costs, or education and licensing requirements. American economist Joe S.

Detailed explanation-2: -Common barriers to entry include special tax benefits to existing firms, patent protections, strong brand identity, customer loyalty, and high customer switching costs. Other barriers include the need for new companies to obtain licenses or regulatory clearance before operation.

Detailed explanation-3: -Barriers to entry generally fall under three categories, artificial, natural, and government. Natural refers to structural barriers to entry, artificial refers to strategic barriers to entry, and government refers to regulation and legal requirements established by governments.

Detailed explanation-4: -There are 4 main types of barriers to entry – legal (patents/licenses), technical (high start-up costs/monopoly/technical knowledge), strategic (predatory pricing/first mover), and brand loyalty.

Detailed explanation-5: -Advertising and Marketing. Capital Costs. Monopolization of Resources. Cost Advantages (excluding economies of scale) Customer Loyalty. Distribution. Economies of Scale. Regulatory Barriers. More items