However, on the other hand, it can also be argued that monopolistic competition can also describe and explain the behaviour of smaller firms in
[Economics tutor's note: For advanced A level students or H3 students or undergraduate students who want to learn more Economics, see Oliver Williamson for more Economics materials on asset specificity. On a related note, for transaction costs: Ronald Coase might be interesting to read about too, on this topic.]
Other barriers to entry may not be based on EOS, which is a natural kind of barrier; other barriers may be man-made artificial barriers such as laws and regulations, such as those regulating SMRT and SBS – hence, the high barriers to entry that are characteristic of oligopolies are present in many large Singapore firms.
There are many good examples to illustrate this feature. Take the example of the market for
In banking, for example, there are the giant firms DBS and UOB, while the