Answer to Question #113330 in Macroeconomics for Nkateko Mabasa

Question

Which is a natural barrier to the entry of a new farm in an industry

Answer 1

Among the obstacles are the following:

- problems with raw materials, as the main raw materials are sold under previously concluded contracts;

- problems with skilled workers, as the new company cannot offer more favorable terms of remuneration;

- the lack of a clearly streamlined sales system, which may reduce the speed of money circulation in this business.