explain the significance of barriers to entry feature of monopoly
1.) Encourage company to develop new products without any risk of loosing its ownership and solely earning the returns on the hard work done. Eg- Xerox development of photocopy machine .
2.) Government on certain essential service like railways, Defense, atomic, etc want to have monopoly for social service.
3.) Developing a monopoly in market by forming cartel reduces price competition and helps different competitors earn profit.
2.) Government on certain essential service like railways, Defense, atomic, etc want to have monopoly for social service.
3.) Developing a monopoly in market by forming cartel reduces price competition and helps different competitors earn profit.