1/13/2017 12:00 AM 1931100 Print Calculator tion 2 of 14 Sapling Learning From t
ID: 1103930 • Letter: 1
Question
1/13/2017 12:00 AM 1931100 Print Calculator tion 2 of 14 Sapling Learning From the list below, determine if each item represents an example of a barrier to entry or not. Is an example of a barrier to entry Is not an example of a barrier to entry Boeing already serves a lasge fraction of theDeBeers owning nearly all of the worlds diamond mines jumbo jet market and is able to produce at a lower average cost than any potential competitors. Pfizer being the only firm that is legallyT allowed to produce and sell Lipitor, a the most popular newly-released movies best-selling cholesterol drug eExplanation / Answer
Examples of Barrier to entry:
1. Pfizer being the only firm that is legally allowed to produce and sell Lipitor, a best-selling cholestrol drug.
It shows barriers to entry because firm legally owned the right to produce good.
2. DeBeers owning nearly all of the worlds diamond mines.
It shows barriers to entry because all natural resource is owned by a single firm.
3. Boeing already serves a large fraction of the jumbo jet market and is able to produce at a lower average cost than any potential competitors.
When one firm has market control and able to produce goods at lower than it acts as a barrier because new firm is not able to compete with this lower price.
Not an example of Barrier to entry:
1. Tinseltown Theaters shows almost all the most popular newly-released movies.
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