Barriers to entry include network externalities and patents.

Question

Quizplus · Accepted Answer

Barriers to entry, such as network externalities and patents, can prevent or discourage competitors from entering a market. Network externalities increase the value of a product or service as more people use it, creating a barrier for new entrants. Patents protect innovations, giving the patent holder exclusive rights to the technology, process, or product, thus limiting competition.

Barriers to Entry Include Network Externalities and Patents