discuss the major barriers to entry inro an industry. explain how each barrier can foster either monoploy or oligopoly. which barriers, if any, do you feel give rise to monopoly that is socially justifiable

Respuesta :

The major barriers to enter into industry are explained below descriptively

1) Economies of scale – Due to cost advantages brought on by economies of scale, the market may not always permit the operation of more than one enterprise. This can result in monopoly.

2) High fixed costs – Since the majority of manufacturing requires certain fixed costs, a new company may not have them.

3) Patents: When a company has patent rights for a certain sort of goods, monopoly is unavoidably the result.

4) Ownership of specific inputs is necessary since output requires input. However, occasionally, a single company is the exclusive owner of the input needed to make the output. Additionally, a market monopoly may result from this.

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