Assignment:
Analyze the major barriers for entry and exit into the airline industry. Explain how each barrier can foster either monopoly or oligopoly. What barriers, if any, do you feel give rise to monopoly that will allow the government to become involved to protect consumers?
You can play off my answer if you wish ::Opening an airline industry comes with many major barriers. To even start up, you would have to have proper capital, inventory (planes), staff, a space in an airport, etc. On top of financially, there are also government regulations that you have to make sure your airline business will meets code with for the safety of consumers. This involves many hours of training,which requires a training plan in the business plan.
"Monopoly is a market structure in which there is a single seller of a product with no close substitute."(Amacher, R. & Pate, J. 2013)
"Oligopoly is a market structure in which there are only a few firms or a few firms dominate the market."(Amacher, R. & Pate, J. 2013)
The airline industry as a whole is an oligopoly as there are only a hand full of them due to extreme obsticals involved in the business. Not everyone has billions of dollars in capital, or even the know how to open such a large multi-state/ multi-country business. It isnt just American laws involved, but also laws of the countries that the planes are being flown to.
Write your answer in 200 words.