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Barriers to Entry: Definition and Examples

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Barriers to entry help maintain market power and earn positive economic profits. These factors apply to all imperfectly competitive firms. Discuss these barriers and provide real-world examples.

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Solution Summary

This solution defines barriers to entry and gives specific examples of 6 types of barriers to entry.

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Barriers to entry are factors that either prevent or make it prohibitively difficult for new sellers to enter the market. Barriers to entry include:

- Brand recognition
Examples: Coca-Cola, McDonald's
New sellers have difficulty ...

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