ECONOMICS
MARKET FAILURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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market structures in which producers have some control over the price of their products.
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obstacles that can restrict access to a market and limit competition
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producers who must accept the market price for their product.
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the costs of shopping around for the best product at the best price.
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Detailed explanation-1: -Barriers to entry is an economics and business term describing factors that can prevent or impede newcomers into a market or industry sector, and so limit competition. These can include high start-up costs, regulatory hurdles, or other obstacles that prevent new competitors from easily entering a business sector.
Detailed explanation-2: -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-3: -Barriers to entry are factors that prevent or make it difficult for new firms to enter a market. The existence of barriers to entry make the market less contestable and less competitive. The greater the barriers to entry which exist, the less competitive the market will be.
Detailed explanation-4: -A market with perfect competition features zero barriers to entry. Under perfect competition firms are unable to control prices, and produce similar or identical goods. This means that firms cannot operate strategic barriers to entry.
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