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