Examples of barriers to entry include Patents.
<h3>What Are Barriers to Entry? </h3>
A term used in economics and business to describe variables that can deter or make it difficult for newcomers to enter a market or industry sector and so limit competition is "barriers to entry." These might include prohibitive startup fees, bureaucratic roadblocks, or other barriers that make it difficult for new rivals to enter a market. Existing businesses win from entrance barriers because they preserve their market share and capacity to make money.
There are four main types of barriers to entry:
- legal (patents/licenses),
- technical (high start-up costs/monopoly/technical knowledge),
- strategic (predatory pricing/first mover),
- brand loyalty.
Most people think of patents as temporary entry barriers put in place by the government. Patent protection, however, typically restricts access rather than blocking it. A business may enter a market that is protected as long as its product complies with a minimum standard of novelty and does not violate any active patents.
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Answer:
The correct answer is A
Explanation:
Natural monopoly is the kind of monopoly which exists because of the high start up costs as well as the powerful economies of scale for conducting or performing a business in a particular industry.
And for this type of monopoly to exist , a firm or business need that the long run average cost curve will exhibit the economies of scale by the relevant range of the market demand.
Answer:
i guess its letter D.
D. Advertising because he can have commercials on all the local TV or radio stations to attract
new customers.
Explanation:
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The demand for cheap pizza will <span>decrease because demand for cheap pizza is negative related to income.
a relation could be considered as negative if the correlation between two events opposing one another. As students finds high paying job, they are now able to buy more expensive pizza, which means that a number of customers for cheap pizza will be decreased</span>
Answer and Explanation:
The computation of the shareholder equity for each case is shown below:
a. For case one
As we know that
Total assets = Total liabilities + stockholder equity
$9,900 = $10,700 + stockholder equity
So, the stockholder equity is
= $10,700 - $9,900
= $800
b. For case two
Total assets = Total liabilities + stockholder equity
$9,990 = $10,700 + stockholder equity
So, the stockholder equity is
= $10,700 - $9,990
= $710
