<h2>Summing Up Barriers to Entry</h2>
<p><a href="#Table_09_01">This table</a> lists the barriers to entry that have been discussed here. This list is not exhaustive, since firms have proved to be highly creative in inventing business practices that discourage competition. When barriers to entry exist, perfect competition is no longer a reasonable description of how an industry works. When barriers to entry are high enough, monopoly can result.</p>
<div>
<p><strong>Barriers to Entry</strong></p>
<table id="Table_09_0" summary="This table consists of three columns and five rows. The first column is labeled barrier to entry and rows 1-5 read 'natural monopoly,' 'control of a physical resource,' 'legal monopoly,' 'patent, trademark, and copyright,' and 'intimidating potential competitors.' The second column is labeled government role? with rows 1-5 reading: 'government often responds with regulation (or ownership),' 'No,' 'Yes,' 'Yes, through protection of intellectual property,' and 'Somewhat.' The third column is labeled example with rows 1-5 reading: 'water and electric companies,' 'DeBeers for diamonds,' 'Post office, past regulation of airlines and trucking,' 'New drugs or software,' and 'Predatory pricing; well-known brand names.'">
<thead>
<tr>
<th>Barrier to Entry</th>
<th>Government Role?</th>
<th>Example</th>
</tr>
</thead>
<tbody>
<tr>
<td>Natural monopoly</td>
<td>Government often responds with regulation (or ownership)</td>
<td>Water and electric companies</td>
</tr>
<tr>
<td>Control of a physical resource</td>
<td>No</td>
<td>DeBeers for diamonds</td>
</tr>
<tr>
<td>Legal monopoly</td>
<td>Yes</td>
<td>Post office, past regulation of airlines and trucking</td>
</tr>
<tr>
<td>Patent, trademark, and copyright</td>
<td>Yes, through protection of intellectual property</td>
<td>New drugs or software</td>
</tr>
<tr>
<td>Intimidating potential competitors</td>
<td>Somewhat</td>
<td>Predatory pricing; well-known brand names</td>
</tr>
</tbody>
</table>
</div>

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Summing Up Barriers to Entry

Economics studies social behavior guiding the allocation of scarce resources to meet the unlimited needs and desires of the individual members of a given society, and for the production of goods and services, growth of production and welfare over time, and a great variety of other complex issues of vital concern to society. 

Economics

Learn about the formation of monopolies and the control of physical resources as well as how profit-maximizing monopolies choose output and price while exploring the inefficiency of monopolies and key concepts in this tutorial.


Barrier to Entry	Government Role?	Example
Natural monopoly	Government often responds with regulation (or ownership)	Water and electric companies
Control of a physical resource	No	DeBeers for diamonds
Legal monopoly	Yes	Post office, past regulation of airlines and trucking
Patent, trademark, and copyright	Yes, through protection of intellectual property	New drugs or software
Intimidating potential competitors	Somewhat	Predatory pricing; well-known brand names

Summing Up Barriers to Entry

Summing Up Barriers to Entry

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