Barriers to Entry
Different types of barriers to entry
- Created by: TessAni
- Created on: 18-01-13 15:25
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- Barriers to Entry
- Economies of Scale
- LRAC curve is likely to be lower for established firms
- Particularly true in Oligopolies - such as coach industry
- Intimidation
- Established firms - bus and taxi markets
- High set-up costs
- Most prominent in rail ways and airline markets
- Brand loyalty
- True of markets with well established brands - oligopolies
- Legal barriers
- Have to meet certain standards - public liability insurance is mandatory
- Predatory Pricing
- Charge low prices preventing others from being able to compete - bus markets
- Bus markets
- Obstacle to new firms entering the market
- Economies of Scale
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