t. Thus, the costs associated with the acquisition of patent licenses, specialized equipment, economies of scale production facilities, and skills--both managerial and production--may be cost barriers to entry into a market. With respect to the American steel industry, both the integrated and general groups, formidable cost barriers to entry exist with respect to economies of scale production facilities and specialized equipment.
2. Product differentiation barriers to entry are the advertising expenditures required for a new market participant to persuade buyers that its products are somehow different from those products already available in the market. Such advertising must not only persuade buyers that the new firm's products are different from those already available, but that because of such differences they are worth buying in preference to the currently available products. The costs associated with such advertising may be sufficiently high as to constitute a product differentiation barrier to entry into a market. Product differentiation cos
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