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Spectrum of Competition (Imperfect Competition (Firms in a…

- - - - Brand Loyalty
        
        If consumers are very loyal to a brand, which can be increased with advertising, it's difficult for new firms to gain market share
      - Sunk Costs
        
        If unrecoverable costs, like advertising, are high in an industry, the new firms will be deterred from entering the market, because if they're unable to compete, they don't get the value of the costs back
      - Owning a Resource
        
        Early entrants to a market can establish their monopoly power by gaining control of a resource
      - Set-up Costs
        
        If it's expensive to establish the firm, then new firms will be unlikely to enter the market
      - Limit Pricing
        
        Involves existing firm setting price of their good below production costs of new entrant, to make sure new firms can't enter profitability
      - Economies of Scale
        
        As firm grows bigger, average cost of production falls because of ECONs - means existing large firms have a cost advantage over new entrants to the market, which maintains their monopoly power. Deters new firms from entering the market, because they aren't able to compete with exiting firms