ECONOMICS
COMPETITION AND MARKET STRUCTURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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monopolies
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barriers to entry
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competition
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commodities
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Detailed explanation-1: -Advertising and Marketing. Capital Costs. Monopolization of Resources. Cost Advantages (excluding economies of scale) Customer Loyalty. Distribution. Economies of Scale. Regulatory Barriers. More items
Detailed explanation-2: -Barrier to entry is the high cost or other type of barrier that prevents a business startup from entering a market and competing with other businesses. Barriers to entry are frequently discussed in the context of economics and general market research.
Detailed explanation-3: -Answer and Explanation: Licences does not prevent any business from entering a specific industry.
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: -Economies of scale. Product differentiation. Capital requirements. Switching costs. Access to distribution channels. Cost disadvantages independent of scale. Government policy. Read next: Industry competition and threat of substitutes: Porter’s five forces.