ABSTRACT
The conventionally accepted barriers to entry have been classified into three groups: product differentiation, absolute cost advantages, economies of scale. If one commences with the premise that these constitute barriers to entry it would be only a short stretch to argue that firms erecting them are in possession of monopoly power. Product differentiation affects the degree of substitutability between products and in turn the constellation of demand and supply. However, if a product's distinctiveness is insubstantial to begin with, then the firm would be working toward shifting or tilting the existing demand or supply curves. For instance, in improving an existing product a firm may have modified its existing production process to allow it to produce more of this product than it would have had it not modified its production process, which in turn would allow it to price this product below the one in use by consumers at present.
