Barriers To Entry
Numerous barriers to entry could exist that restrict free entry:
- A resource is owned by a single firm. For instance, one business might control the only well for clean water in a region.
- The government might grant a single firm a monopoly. For instance, the state might bar competition to a state owned utility company. Alternatively, one business might possess a legal patent or copyright on a certain good.
- The structure of the market or the production process might make a single producer most efficient - this is called a natural monopoly.
Read more about this topic: Free Entry
Famous quotes containing the words barriers to, barriers and/or entry:
“The principle that human nature, in its psychological aspects, is nothing more than a product of history and given social relations removes all barriers to coercion and manipulation by the powerful.”
—Noam Chomsky (b. 1928)
“The majority of women, they have half-a-glass too much and let down their barriers a little. Then they wake up in the morning, riddled with guilt and think they can reclaim their virtue by saying, I dont remember.”
—Blake Edwards (b. 1922)
“All mothers need instruction, nurturing, and an understanding mentor after the birth of a baby, but in this age of fast foods, fast tracks, and fast lanes, it doesnt always happen. While we live in a society that provides recognition for just about every life eventfrom baptisms to bar mitzvahs, from wedding vows to funeral ritesthe entry into parenting seems to be a solo flight, with nothing and no one to mark formally the new moms entry into motherhood.”
—Sally Placksin (20th century)