BARRIERS TO ENTRY Flashcards
1
Q
what is an example of barriers to entry
A
controlling a scarce resource - if a mining company pegged the only diamond mine in the country, it would have sole rights ot he mine the gems
a government license granting a legal monopoly e.g. Australia Post
technological advantage -e.g. Microsoft has considerable market power because it supplies the operating system used in most computers
a patent or invention gives protection from competition(up to 17 years in Australia)
