Thursday, April 1, 2010

Entry in the File Transfer Industry

One of the ideas from Prin. of Micro is that industries that make high economic profits and have low barriers to entry should have higher rates of entry than industries that have low economic profits or high barriers to entry. The file transfer industry fits the high economic profits and low barriers to entry. In an interesting article in the USA Today shows how new firms are entering the industry that is expected to grow from $600 million in 2009 to $1 billion by 2012. The article also mentions that barriers to entry are low - one company was set up in a weekend.

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