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Resource intensity in itself is unlikely to deter entry. A key factor determining industry concentration is the potential for economic profits (rents). You seem
by dsushant 13y ago
Resource intensity in itself is unlikely to deter entry. A key factor determining industry concentration is the potential for economic profits (rents). You seem to be referring to electric utilities - while regulation is a more plausible entry barrier, the proximate cause is more likely the dearth of rents.