Free Entry - Barriers To Entry

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.

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Famous quotes containing the words barriers and/or entry:

    “Developing the muscles of the soul demands no competitive spirit, no killer instinct, although it may erect pain barriers that the spiritual athlete must crash through.”
    —Germaine Greer (b. 1939)

    “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)