Respuesta :
The primary reason why Alcoa faced limited competition due to barriers to entry was that only Alcoa had access to most of the bauxite. One of the primary reasons for barriers to entry was economies of scale.
Alcoa Corporation is a very reputed American industrial corporation. Alcoa is the eighth-largest producer of aluminum in the world. It has corporate headquarters in Pittsburgh, Pennsylvania. Alcoa conducts operations in ten countries. The latest name of this company has been changed and is now popularly known as Arconic Inc.
In microeconomics, economies of scale are the advantages in cost that an enterprise can obtain due to its scale of operation. They are typically measured by the amount of output that is produced per unit of time. A decrease in cost per unit of production enables an increase in scale. So these are the advantages that a company has when production becomes efficient. So to prevent a monopoly situation the company Alcoa faced barriers to entry complications.
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