Answer:
1. Government Regulations: When governments impose strict regulations and licensing requirements, it can create barriers to entry and exit. For example, in certain industries like healthcare or telecommunications, governments may require specific licenses or permits, making it difficult for new firms to enter or existing firms to exit the market.
2. Monopoly or Oligopoly: In a market dominated by a single firm (monopoly) or a small number of large firms (oligopoly), entry barriers can exist. These firms may use their market power to restrict or prevent new entrants, thus limiting competition and inhibiting free entry and exit.
3. High Start-up Costs: Some industries may have high start-up costs, such as heavy infrastructure requirements or significant capital investments. These costs can act as barriers to entry, limiting the ability of new firms to enter the market and impeding free entry and exit.
4. Intellectual Property Rights: In industries where intellectual property rights play a crucial role, such as pharmaceuticals or technology, patents and copyrights can restrict entry. These protections grant exclusive rights to the inventor or creator, limiting competition and hindering free entry and exit.
5. Natural Barriers: Certain markets may have natural barriers that make it difficult for firms to enter or exit. For example, in remote areas with limited infrastructure or geographical constraints, the cost of transportation or distribution may be high, making it challenging for firms to enter or exit the market freely.
It's important to note that these non-examples of free entry and exit are just a few examples, and there may be other factors specific to different markets that can limit or restrict the ability of firms to freely enter or exit.
Step-by-step explanation: