Conditions which may prevent new firms from entering an industry (i.e. ,the use of patents)are referred to as

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Barriers to entry are conditions or factors that make it difficult or costly for new firms to enter an industry. Patents are one type of barrier to entry because they give the patent holder exclusive rights to produce and sell a particular product or process for a certain period of time, preventing competitors from entering the market with the same product or process. Other examples of barriers to entry include high start-up costs, economies of scale, and government regulations.

Conditions Which May Prevent New Firms from Entering an Industry