Assess the likely barriers to competition in the industries supplying leisure goods and services.

This essay is going to look at various barriers to contender avail open to star signs specific to the void industry. This industry takes a truly broad form and so cannot easily be defined. I am going to take it to mean anything to do with leisure from c hazardhing and equipment to stadia and sponsorship. There be many different barriers solely the usefulness of each of these to a firm testament aim on the individual firms market share.

Oligopoly occurs when just a hardly a(prenominal) firms between them share a large proportion of the industry. These firms will have access to a range of barriers to competition unless the size of the barriers will vary from industry to industry. In whatever cases entry is relatively easy whereas in others, virtually impossible. Firstly, if an oligopolistic maker experiences significant economies of shield, the industry may not be able to support more producers. The scales of a plant or firm at which the lowest attainable unit costs are achieved are referred to as optimum scales. (Geroski, 2001) This can be seen in Figure 1 below:

At point A, the long conduce average cost curve (LRAC) is at its minimum and thusly this is the optimum output, Q*. Between 0 and Q* the producer is experiencing economies of scale and after(prenominal) Q*, diseconomies of scale. If another entrant should enter this industry, it will have sensation of four effects.



(or a combination of some of them) Firstly, the entrant may enter at a small enough scale so that his entry will have no discriminable effect on the prices or output of the established firm. Second, he may enter at larger scales - at or near the optimum output - thus necessarily influencing any prices or outputs in the industry, and encounter a situation in which established firms...

This is a great essay with a lot of potential! There are a lot of opinions listed besides backed up with evidence and explanation for the specific views! painful effort in the essay and it shows! Excellent work!

If you lack to get a full essay, order it on our website: Orderessay



If you want to get a full information about our service, visit our page: How it works.