ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Start-up costs discourage entrepreneurs from entering a market by how expenses that have new businesses must pay before the first product reaches the customers, if the prices are high then that will discourage entrepreneurs.

Detailed explanation-2: -The less you spend on initial business costs, the more you can enjoy high profits in your startup business. Reducing costs can benefit your business in many ways. By reducing extra expenses means you can increase your startup working capital. You can also allocate these funds into other business operations.

Detailed explanation-3: -Startup costs are the expenses incurred during the process of creating a new business. Pre-opening startup costs include a business plan, research expenses, borrowing costs, and expenses for technology. Post-opening startup costs include advertising, promotion, and employee expenses.

Detailed explanation-4: -The most obvious barriers to entry are high start-up costs and regulatory hurdles which include the need for new companies to obtain licenses or regulatory clearance before operation. Also, industries heavily regulated by the government are usually the most difficult to penetrate.