What entry barriers exist in (a) the fast-food industry, (b) cable television, (c) the auto industry, (d) the illegal drug trade, (e) potato chips and (f) beauty parlors?

Respuesta :

Answer:  

a) Fast Food- The primary barrier is acquiring a franchise license for the individual restaurant or obtaining a food licence.

b). Cable TV - The primary barrier is obtaining a local franchise license. However, once established, new firms wanting to enter the market must also face very high start-up costs.

c). Auto Industry- major barrier is the extraordinarily high start-up costs and brand loyalty.

d). Illegal Drug Trade - This is an illegal market and new entrants are often kept out of this industry by threats from current suppliers.

e) Potato chips - Natural barriers may exits. Some producers may own a special variant of potato which is best suited for making chips.

f). Beauty parlors- This has the lower enter barrier. But at many places it may require here are licenses and health regulations to keep everything sanitary.

                               

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