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Q: What are the Barriers to entry into the pharmaceutical industry?
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An expiration of a major industry patent would A increase barriers to entry B decrease barriers to entry C leave barriers to entry unaffected D increase supplier power E decrease supplier power?

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Types of profits in the long run in oligopoly?

Supernormal profits due to high barriers to entry. Profits in the long run are determined by the barriers to entry. If there is high barriers to entry, new firms cannot enter the industry easily and hence cannot competed with existing firms for profits. Existing firms would be able to enjoy supernormal profits. On the contrary, weak barriers to entry means that the long run profits would be competed away by new firms entering the industry, hence firms would earn normal profits. Oligopoly market is characterised by high barriers to entry, largely due to non-price competition such as branding, advertising, etc. High barriers could also be due to economies of scale and high fixed cost.


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Barriers to entry vary between markets. Some barriers to entry include money, governmental regulations and competitors. Most businesses will structure their businesses to exploit barriers to entry and make it hard for others entering to compete.


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Conditions that prevent the entry of new firms in a monopoly market are?

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