Barriers to entry and exit
What Barriers to entry and exit means in Economics A-Level, as defined for AQA, Pearson Edexcel.
Definitions of Barriers to entry and exit
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Reference: AQA
Their absence in the long run means new firms enter, shifting the incumbent firm's average revenue and marginal revenue curves to the left.
Analysis of structural (economies of scale), legal (patents), and strategic (limit pricing) obstacles that determine market contestability and the sustainability of supernormal profits.
Topics that use Barriers to entry and exit
- Monopolistic competition (AQA A-Level)
- Market structures (Pearson Edexcel A-Level)
Related terms
- Efficiency
- Efficiency and Welfare
- Imperfect information
- Interdependence and Strategic Behavior
- Non-price competition
- Product differentiation
- Average revenue (AR) curve
- Brand loyalty
Using Barriers to entry and exit in the exam
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