Question:
What is the classification of entry barriers according to Bain, and what does Chicago school think?
Author: Hjalmer PedersenAnswer:
Definition of entry barriers: Entry barriers are defined in many ways but namely: ” Conditions that allow firms to earn abnormal profits without attracting entry of new competitors” - Bain 1956 Chicago school opposes this view: cost differentials above rarely last in the long run not entry barriers per se important BUT the speed at which barriers can be overcome.
0 / 5 (0 ratings)
1 answer(s) in total