Barriers To Entry Flashcards
1
Q
Barriers to entry
A
This is the factors that could prevent a firm from entering and competing in a market
2
Q
Barriers to entry : larger set up costs
A
Larger set up costs can include capitL such as machinery and premis
3
Q
Barriers to entry: marketing
A
The marketing budget is needed to break coustomers loyalties
4
Q
barriers to entry: economies of scale
A
Due to being a new coustomers then there could be a inability to gain economies of scale
5
Q
Barriers to entry: price wars
A
Due to being a new costumer price wars can start a price war
6
Q
Barriers of entry: legal restrictions
A
Legal restrictions such as patents
Patents: legal restrictions on products/ ideas. They last for 7 years to stop people coping
