Principles of Microeconomics / Unit 8 MIC 0702 short lesson, about 20 seconds
Barriers to Entry
Captions available
The idea
A barrier to entry is anything that blocks new firms from a profitable market. With barriers, profit does not attract entry, so the competitive zero-profit result never arrives.
In practice
A rival cannot enter a market it needs a license, a mine or a network to serve.
Where people slip
The barrier is the source of the power; remove it and the monopoly erodes, whatever its size.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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