Definition
- Barriers to entry
- Barriers to entry are the legal, technological or market forces that discourage or prevent potential competitors from entering a market.
- Not to be confused with: Monopoly
- A monopoly is a market in which one firm produces all of the output, so it faces no significant competition.
Test yourself
What is the difference between barriers to entry and monopoly?
A monopoly is the market with one firm; barriers to entry are what keep it that way.