Decline in commercial competition due to entrance barriers

The analysis of entry barriers generally revolves around four factors: economy of scale; minimum capital requirements; product differentiation; and access to special resources or privileges. It is widely accepted that economies of scale are the single most important determinant of concentration levels in modern industry. For given technological and marketing conditions, and for a given size of the final market, the higher the minimum scales for achieving such economies, the more concentrated an industry is likely to be.