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5 Cards in this Set
- Front
- Back
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barrier to entry (or exit)
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anything that restricts or prevents the free flows of resources into or out of an industry
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legal barrier to entry
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any government policy, such as an exclusive franchise or a patent, that restricts or prevents the free flow of resources into or out of any industry
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natural barrier to entry
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features inherent in production or supply, such as economies of scale and limited access to a vital factor of production, that restrict or prevent the free flow of resources into or out an industry
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behavioral barrier to entry
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strategic decision on the part of a firm that is specifically designed either to deter entry entirely or to accommodate entry by forcing new firms to enter on a smaller scale
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predatory pricing
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strategy used by an incumbent firm to deter entry in which the firm sets its price so low that a new entrant could not possibly make a profit
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