Type Of Barriers

Types of Barriers:

1. Natural Barrier/Economics of scale:-
                                                                An industry in which the Economics of scale are so large that a single firm can produce the product at lower average cost this would be possible if more then one firm produce that product..

2. Legal Barrier:- 
                              If Government allow only one firm to produce the product then this is a legal Barrier for the new firms.

3. Exclusive Control On RAW Material:-
                                                                   If there is exclusive control on RAW of material of specific product then that firm has Monopoly  in the production of such product

4. Higher Initial Cost:-
                                    If the initial cost to produce the product in higher then there is a barrier for new firms to enter in the Market.

5. Geographical Monopoly:-
                                             If Government does not allow the transportation of one good from one region to another region, then the firm  which is producing the product has Monopoly in the region.

6. Cartels:-
                 If a group of producers join together to maximize a profit, they work like a Monopoly.