The barriers to entry that exist in the fishing industry are licensing

The barriers to entry that exist in the fishing industry are licensing

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The barriers to entry that exist in the fishing industry are licensing, taxation, industry assistance, industry volatility and capital labour intensity. First licensing is a form of monopoly power that in some extent give exclusive control in certain firms or fisherman in the industry. The licensing in the fishing industry occurs through output and input controls, these are the regulations and licensing policies that limit fisherman. For instance is ‘TAC’ total allowable catch which specify certain species of fish and quantities that may be caught. Secondly it’s fishing industry volatility which discourages new firms entrance to the industry. Thirdly its taxation that restrict new vessels in the industry. In fishing industry licensing is the more significant barrier in the industry to create firm specific pricing power. By the term specific pricing power this writing means the extent to which a firm or fisherman can influence the price of an item by exercising control over its demand, supply or both. Firms that
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This note was uploaded on 05/23/2011 for the course ECON 203 taught by Professor Jules during the Spring '11 term at University of Cape Town.

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The barriers to entry that exist in the fishing industry are licensing

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