Definition
- Control of a physical resource
- Control of a physical resource is a firm holding most of the supply of a scarce input that everyone in its industry depends on.
Example
Can you think of an example of control of a physical resource?
When one company controlled most of the bauxite, the mineral aluminium is made from, other firms were simply unable to produce enough aluminium to compete with it.
Test yourself
Can you name five barriers to entry?