what could be preventing other firms from entering the diamond market?
Answers
Answered by
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Hi,
There are several barriers that would stop a firm from entering the diamond market.
These reasons are following;
- Monopolies that exist among firms
- Legal issues
- Technological preferences
- Cost effectiveness
- Market demand of diamond
- Geographical Regions
- Physiological reasons
In the eye of above reasons, one might think a 100 times before entering into the diamond business.
I hope the answer helped you.
Thanks
Answered by
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The monopolistic conditions preventing other firms from entering the diamond market.
Explanation:
- In a market there where there is a monopoly of a firm, there is one company that is big enough and monopolizes the market.
- The other firms are not large enough for their comparison and do not have the required resources.
- Due to which the diamond market is monopolized by larger organizations that have the required resources and they prevent the other firms from ‘entering the market’.
- There is a single firm that owns the maximum number of diamond mines in the world. Hence they are able to monopolize the markets.
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