1.) Define the following:
a.)What is a barrier entry?
b.) What is natural
c.) What is legal monopoly?
d.) What is predatory pricing?
(a.)What is a barrier entry?
In theories of competition in economics, an economic barrier to entry or a barrier to entry is a fixed cost that must be incurred by a new firm, regardless of sales or production activities, into a market that incumbents do not have or have not had to incur.
Since barriers to entry protect incumbent firms and restrict competition in the market, they can contribute to distortionary prices and are hence most important when discussing antitrust policies. Barriers to entry usually cause or aid the existence of oligopolies and monopolies, or give businesses market power.
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