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3.7 What barriers exist to firms entering and leaving markets?

What students need to learn:

Students should be able to:
Additional Guidance Notes
Barriers to market entry and exit
Understand the meaning and types of barriers to entry and exit and how they affect the behaviour of firms.
Examples of barriers to include economies of scale; limit pricing; legal barriers, for example patents; sunk costs, for example advertising.

Students will be expected to discuss the significance of barriers to entry and exit to firms operating in different market structures.

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