Written by the Fiveable Content Team • Last updated September 2025
Written by the Fiveable Content Team • Last updated September 2025
Definition
Barriers to entry are obstacles that make it difficult or costly for new firms to enter a market and compete with existing businesses. These can include legal requirements, high startup costs, or access to technology.
Related terms
Market Monopoly: A situation where a single firm controls the entire market for a product or service, often resulting from high barriers to entry.
The cost advantage achieved by an increase in production, allowing larger firms to produce goods at a lower cost per unit than smaller competitors.
Regulatory Licensing: Government-imposed requirement that one must obtain permission before entering certain businesses or professions, serving as a barrier to entry