A column on forbes.com discussed Google, Apple, Facebook, and Amazon, all of which operate in oligopolistic markets. The column argued that the concerns of some policymakers and economists about the market power of these firms may be overstated because “history teaches us that in a fast-moving industry, driven by fast-changing technologies, barriers to entry may be far less significant than one might believe.”
a. What does the columnist mean by “barriers to entry”? Name one barrier to entry a new firm would face in competing with:
i. Google in online advertising
ii. Apple in smartphones
iii. Facebook in social media apps
iv. Amazon in online retailing
b. How might “fast-changing technology” reduce the importance of each barrier to entry that you identified in part a.?