There are five major barriers to enter in to any industry.
1) Economies of scale – On occasion, the market prohibits the operation of more than one firm due to cost advantages brought about by economies of scale. This could result in a monopoly.
2) High fixed costs – Since the majority of manufacturing required some fixed factors, the new company might not have the necessary funds.
3)Patents: When a company has patent rights for a certain class of goods, it can monopolize the market.
4)Ownership of specific input is required since outcome requires input. However, there are situations when a single company is the only owner of an input needed to make an output. Additionally, a market monopoly can result from this.
5) Competition from others - Already existing businesses will compete with the new entry. However, the performance of that competing company depends on the state of the market.
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