Barriers to entry and exit

Patents are a type of which barrier to entry?

• strategic

• legal

• technical

• brand loyalty

Where do legal barriers start from?

• the firm

• the industry

• the government

• the banks

Sunk costs are costs that when the firm exits the market

• can be recovered

• cannot be recovered

• can be charged to the customer

• will be uneffected by depreciation of assets

Natural monopolies are a type of technical barrier to entry because of

• lack of economies of scale

• firms are likely to be in the private sector

• the market has enough demand for multiple sellers

• a high MES in that type of market

When firms price where they are making just normal profit this could be a strategy called

• predatory pricing

• dumping

• limit pricing

• normal pricing

Barriers to exit are

• obstacles that prevent a firm leaving the market

• obstacles that prevent a firm joining the market

• obstacles that prevent monopolies

• illegal