Barriers to Entry
Barriers to entry are obstacles that make it difficult or impossible for new competitors to enter a market. These include high capital requirements, economies of scale, legal restrictions, brand loyalty, and control of essential inputs. Barriers protect incumbent firms from competition.
Real World
Launching a new mobile network in the UK would require billions in spectrum licences and mast infrastructure, which is why only three major operators (EE, Three, Vodafone) dominate — high capital costs deter new entrants.
Exam Focus
Classify barriers as natural or artificial and link them explicitly to the market structure in the question to demonstrate applied understanding.
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