ebs 5032 report part 15.docx - 1 ASSIGNMENT 6 MODULE 6...

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ASSIGNMENT 6
MODULE 6 REPORT
EBS 5032 MANAGERIAL ECONOMICS
JANUARY 2020 COHORT

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ASSIGNMENT 6
Conclusion
Competition affects several aspects of a business. It tends to determine the barrier to
entry for a business. For more competitive industries, the barrier to entry is relatively low.
Many competitors can enter the marketplace and afford to do business. In less competitive
markets, it is difficult to enter the market and compete with the existing entities. This could be
due to cost or legal difficulties. For example, if you want to build a railroad, you are going to
be in for a difficult undertaking. Building new railroad tracks requires government approval,
which is not easily given. Further, the amount of money needed for such a project is not
available to most.