Monopolies
When a person decides to enter into a business, there are certain barriers associated with it. One possible barrier may be that it requires a large capital outlay, such as the purchase of an airplane, or building a building. There may also be barriers in the new company has to offer their product at a lower price than competitors because a competitor has a significant amount of “brand equity” established. A good example of this would be a product similar to Coke trying to enter the market. A new product may have to offer their product as a lower priced alternative.