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)
“... so far from entrenching human conduct within the gentle barriers of peace and love, religion has ever been, and now is, the deepest source of contentions, wars, persecutions for conscience sake, angry words, angry feelings, backbitings, slanders, suspicions, false judgments, evil interpretations, unwise, unjust, injurious, inconsistent actions.”
—Frances Wright (1795–1852)
“When women can support themselves, have entry to all the trades and professions, with a house of their own over their heads and a bank account, they will own their bodies and be dictators in the social realm.”
—Elizabeth Cady Stanton (1815–1902)