Barriers to Entry

Different types of barriers to entry 

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  • 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


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