Explain two barriers to entry for a new business.

In your response there should be reference to the two most common.

Question

Explain two barriers to entry for a new business. 

In your response there should be reference to the two most common.

anonymous · Answer

Hello,

Monopoly and oligopoly market structures can be two barriers for new business. A monopoly can deters other firms from entering the market due two the monopoly controlling most of that market in that area (greater financial capabilities). Likewise with an oligopoly, however with an oligopoly it is based on mutual agreements. Moving away from concept, and actual barriers that are common is start-up costs ant technology. 

Note: To an example of an oligopoly is the major internet service providers, they all agree on one price making it hard for smaller firms. 

Peace.