Question

In the movie Forest Gump, Consider the barriers to entry facing potential competitors in Forrest’s monopoly market ( his shrimp boat). The more contestable a market, the closer it will be to a perfectly competitive market, whereas the less contestable a market, the closer it will be to a monopoly.

Answer 1

ABOUT THE FILM: Forrest Gump, American film, discharged in 1994, that chronicled 30 years (from the 1950s through the mid-1980s) of the life of an intellectually impaired man (played by Tom Hanks) in a far-fetched tale that earned basic recognition, huge crowds, and six Academy Awards, including best picture.

ECONOMIC PERSPECTIVE

• The Forrest Gump video cut gives you what destiny can do to any business. Because of the hurricane, Forrest's shrimp pontoon was the one in particular that endure the tempest.
• Forrest effectively enters the shrimp market by purchasing a vessel/boat. There are numerous purchasers and vendors, and no one shrimping pontoon controls the cost of shrimp. Along these lines the shrimp advertise is a case of an immaculate challenge. When the tropical storm hits it powers the various pontoons to leave the market. Transforming the market into a monopoly. Forrest is the sole supplier of the item, controlling the whole market, transforming it into a monopoly.
• Forrest Gump has economies of scale since he has the correct equipment to get more shrimp than the littler organizations which made him a major player in the market. Gump and Lt. Dan hence had the option to have a monopoly due to the tempest that annihilated the entirety of their opposition.

BARRIERS TO ENTRY

• One of the hindrances to entry that competitors countenances would be that they would need to go through the cash to fix their gear that was crushed by the storm just to reemerge the market.
• When they came back to the market they would need to discover approaches to rival Bubba Gump's business since they are holding the whole market and can charge whatever they might want.
• Boundaries to entry are the legal, technological, or market forces that demoralize or keep potential contenders from entering a market. Obstructions to entry can run from the basic and effectively surmountable, for example, the expense of leasing retail space, to the incredibly prohibitive (Principles of Economics).

PRAGMATIC ILLUSTRATION

When it goes to the Radio business, there are just a specific number of frequencies accessible for organizations to communicate on. When these said frequencies are gone nobody else is permitted to enter the market. Right now, I don't think the boundary is contestable in light of the fact that there is just a specific number of frequencies accessible.