Barriers to entry are business conditions that make it difficult for new firms to enter the market.

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Barriers to entry can include high start-up costs, economies of scale enjoyed by existing firms, legal and regulatory restrictions, brand loyalty of customers towards existing firms, and limited access to distribution channels, among others. These barriers can discourage new firms from entering the market, thereby reducing competition and allowing established firms to maintain their market power.

Barriers to Entry Are Business Conditions That Make It Difficult