How does barriers of entry affect concentration and is it a systematic determinant of concentration?

• Free entry is likely to reduce concentration, assuming the entrant is smaller than average size of incumbent firms • Free entry at a large scale is likely to decrease concentration (Increase competition) • Exit is likely to increase concentration (Decrease competition) It is a systematic determinant for concentration, as it can be applied generally to all industries. The need for heavy investments, expenditure on advertisement etc. is likely to increase concentration as there are higher entry barriers and more seller concentration.