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Economies of Scale: They are of the barriers to entry because there is a need for new firms to begin with

big to attain the low production costs of those who are already in the business. However it is noticed that all industries do not require techniques of productions, which requires large scale. In many industries it is noticed that smallest efficient scale is only a minor percentage of domestic utilization. Monopolies those are socially justifiable are risen by natural monopolies. The economies of scale are every now and then such that they have two or more than two firms serving would automatically increase the market costs unreasonably. Example: If any two telephone companies, or any gas companies either any water companies and even electricity companies in the same city would be highly problematic and even costly as long as communication would be requiring wires and pipes, In such category of instances, it becomes necessary obligation for government to grant franchises and then make proper regulation, which will result monopoly to ensure the public interest is protected. Patents and License: These are the other legal barriers, for an entry to some extent they are justifiable. If development were never confined at all from any instant copying by those who bear not any of the costs, the advised amount to be invested and innovated would be lessened and the costly secrecy that will be enforced previously have to be very much greater and even more costly. This does not implies that abuses does not prevail in the present system and a case can be filed that can reduce the present seventeen years for which patents are granted. Ownership of essential raw material: This is considered as another point of barrier to entry. It has a very little public justification except for the coverage that the aspiration of in advances a monopoly in the supply of any essential raw material it give rise to more prospecting. Example: De beers Unfair Competition: This is considered as the last of the barriers and has no social

justification at all that is the reason bankrupt a rival is a major illegal portion. It does not provide any cutthroat competition.

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