Respuesta :
Answer: Government regulation, Economies of scale
Explanation:
Barriers to entry refers to the restrictions that are imposed on the entry of a new firm or business into the market. These can be,
a). Government regulation- Sometimes the government puts many restrictions on the entry of a new firm. These can be license requirement or by limiting the availability of a resource.
b). Economies of scale- These refer to the efficiency in production that occurs when one firm grows larger in size and is able to cover the entire market at a lower cost than many small firms producing the same good in smaller quantities. The cost of production is lower for a single firm than for many firms.
The new business is termed as the startup firm which is in the continuous to stand still in the market and provides services in the economy. It works at the quality and efficiency to survive and generate revenue from the market.
The two barriers faced by the new business to enter the market are:
- Access to the material.
- Access to distribution Channel.
Barriers are the hurdles or the obstacles faced by the new business or firm in setting an identity in the b.
- Access to the material: Entering a market means the firm is to produce something for the consumers in the market. To place production, the firm needs material, some of the capital goods, and huge capital to acquire these. These are the things that need to access to exist in the market.
- Access to distribution Channel: The firm has placed the production but the product has not been reached to the consumer. The firm needs to produce some distribution channels to make the products available to consumers. The distribution channel will help the producers to reach out the products to the consumers.
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