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| Topic: |
Business
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| Number of pages / Number of words: |
4 / 1022 |
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This is due to economy return to scale: the initial investment of an aircraft manufacturer or an air company is extremely high, usually involving billions of dollars. Then it is practically impossible for small firms to enter this market, although there is obviously high profit in the industry. This initial investment works like a capital barrier to entrants, and caused high CR...
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This initial investment works like a capital barrier to entrants, and caused high CR.
Another important reason arises in a heavily regulated market such as wireless communications. Typically the country will license only two or three providers of cellular phone services. Obviously, this is due to national security issue...
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General points of the essay
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