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briefly define a barrier to entry, what is the difference between a structural barrier and a...

briefly define a barrier to entry, what is the difference between a structural barrier and a strategic barrier? provide an example of each. in which market structures are entry barriers high?

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Answer #1

Barrier to entry is restriction on the entry of a new firm in the market for a particular good.

Strategic barriers refer to the behavior of the existing firm(s) in the market that discourages the entry of new firms.Example-product differentiation by heavy expenditure on R and D,economies of scale .

Structural barriers refer to barriers deliberately put the existing firm (s) like patents .

Barriers to entry are high in monopoly and oligopoly market.

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