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Question
What is meant by barriers to entry?
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Solution
Barriers to entry means something that prevents the new firms from entering the industry (or market).
RELATED QUESTIONS
In which type of market price discrimination is practiced? Explain with an example.
The image above shows a departmental store of a market structure.
- Identify the form of market as observed from the above image.
- Discuss the features of this market form with respect to:
- Type of product
- Entry and exit of firms
- Selling cost
How is Perfect competitive market is different from a monopoly market?
Following is not the feature of perfect competition:
'A few big sellers' is a characteristic of ______.
Marginal revenue of a firm is constant throughout under:
There is no difference between perfect competition and pure competition.
Match the following and select the correct option.
| Column I | Column II | ||
| (i) | Perfectly elastic demand | (A) | Oligopoly |
| (ii) | Less elastic demand | (B) | Monopolistic competition |
| (iii) | More elastic demand | (C) | Perfect competition |
| (iv) | Indeterminate demand | (D) | Monopoly |
Read the given statements carefully and select the correct option.
- The number of sellers under oligopoly are small.
- In monopolistically competitive markets, buyers and sellers have perfect knowledge about the market conditions.
Which one of the following is NOT found in a perfectly competition market?
Products sold by each firm in a perfectly competitive market are perfect substitutes of each other.
Identify the market form of the following:
The Government of India is the sole buyer of fighter aircrafts.
Give an example of price discrimination.
Explain the main characteristics of a monopoly.
Product differentiation is practised in monopolistic competition? Give reasons.
Why can a monopolist charge different prices in different markets?
What is meant by the term ‘price taker’?
What is the effect on price when a perfectly competitive firm tries to sell more?
Mention one feature of a monopoly market.
Why do producers incur high selling costs in an imperfect market?
