Essay: The case of barriers of entry in the context of economic theory

Economic theory of collusion highlights that the issues of barriers to entry and market shares should be dealt with before the mergers harm the customers.

Through competition theory, since the mergers are controlled not to exaggerate the prices or lower the quality of the products, it follows that such different mergers as well as other companies will compete through brand quality to ensure brand loyalty and thus win a large market share (Zhang & Zhang, 2012).

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