Therefore, it is possible for the monopolist to avoid competition and continue making positive economic profits in the long‐run. The second is where barriers to entry are imposed artificially. eg supermakets. Examples of barriers to entry. There are 3 barriers to entry that exist in a monopoly: Natural, ownership, and legal. In many jurisdictions alcohol can only be sold by the government-run corporation, creating a legal barrier to entry in this market. This list is not exhaustive, since firms have proved to be highly creative in inventing business practices that discourage competition. Sometimes, monopoly results from The barrier to entry of other firms. This is how monopolies happen. When barriers to entry exist, perfect competition is no longer a reasonable description of how an industry works. Lack of that resource, or lack of access to it, is a barrier to entry. In some cases, barriers to entry may lead to monopoly. A natural barrier to entry in a monopoly occurs when one company can put together the complete market need at a lower expenditure than 2 or more other companies have the ability to put together. One such barrier might be an exclusive government license to provide a utility, such as a water, electricity, or natural gas, in a locality. There are two types of monopoly, based on the kinds of barriers to entry they exploit. and a monopoly = a market structure where there is only one producer, no competition, unique product. fair amount, couple suppliers. Tap water – Economies of Scale. Barriers may block entry even if the firm or firms currently in the market are earning profits. In other cases, they may limit competition to a few firms. The existence of high barriers to entry prevents firms from entering the market even in the long‐run. Barriers to Entry. The first is that someone is so good at providing a good or service that they give better value than any potential competitors. Data becomes the barrier-to-entry to the market and thus prevents new competitors from entering. In the United States, only the USPS can deliver first class mail, so this would be a legal barrier to entry. they have a large control on price. Such a firm can employ strategic barriers to entry to protect its market share and its profits. Summing Up Barriers to Entry. If barriers to entry are very high then the market will invariably become a monopoly. There are only two ways you can have a monopoly. Barriers to entry refer market forces that prevent or oppose other competitors willing to join the industry from entering. One is legal monopoly, where laws prohibit (or severely limit) competition.The other is natural monopoly, where the barriers to entry are something other than legal prohibition. well an oligopoly = a market structure where there are a few sellers of usually differentiated products and there are significant barriers to enter. 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