“Explain how barriers to entry may affect market structure.” “Evaluate the view that the monopoly is an undesirable type of market structure.

Part A:
Barriers to entry is what prevents other firms from entering the market, and in every type of market structure – such as monopoly, oligopoly, perfect competition, and lastly free competition – the barriers to entry range from high to low, making it either difficult or easy to enter their market.

Therefore, if a company wanted to enter a market in a monopoly or an oligopoly, a company would require a lot of resources, primarily funding, and a lot of it. This is because a company willing to join a monopolistic competition would have to account for the wealth of the current competing companies, if their entry funding is unmatchable to the wealth of the current companies, then the their company will most likely fail. To counteract, if a company wanted to join free competition or perfect competition, a company would require minimal to no funding, ergo, a company would not need a lot of funding in order to join their market.