Author Topic: Economics: Barriers to exit  (Read 777 times)

Offline Monopoly

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Economics: Barriers to exit
« on: November 23, 2010, 06:03:48 pm »

# Markets with high exit barriers are unstable and not self-regulated, so the profit margins fluctuate very much over time.
# Markets with a low exit barrier are stable and self-regulated, so the profit margins do not fluctuate much over time.

Can anyone please explain these two points.

Offline Monopoly

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Re: Economics: Barriers to exit
« Reply #1 on: November 25, 2010, 05:42:06 pm »
Any1?   :(