Question

What are the legal barriers of entry for PeruRail?

Answer 1

Answer- PeruRail is the third largest railway network in the world. PeruRail is not owned by government thay can charge as much as they want. PeruRail is the only company that will take passengers from and to Machu Pichhu.

the following are the legal barriers of entry for PeruRail:

-legal resrictions on competition

-patent, trademark and copyright protection gives the creator that no one can use it and stopping other from making it.

-control of a physical resources ( under this a company has a control over a scarce physical resources. Perurail is the only passenger rain from and to Machu Pichhu.

- high capital requirements to enter into a monopoly market.

- economies of scale ( economies of scale are cost advantage that a large firm gain because of their size. They occur because the cost per unit of output decreases with increases scale)

-practices to intimidate the competition like predatory pricing. Under predatory pricing a firm use the threat of sharp Price cuts to discourage competition

- being a single service provider of railway services PeruRail is the firm and industry itsellf.

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