Asked by
Elijah Ferrell
on Nov 26, 2024Verified
A monopolist can use its pricing strategy as a barrier to entry by other firms.
Barrier to Entry
Factors that prevent or hinder companies from entering a particular market, which might include high startup costs, strict regulations, or strong competition.
Pricing Strategy
A plan or approach used by businesses to set the prices for their products or services based on various factors like market demand, competition, and cost of production.
- Recognize the barriers to entry created by monopolies and their implications for competition.
Verified Answer
MM
Learning Objectives
- Recognize the barriers to entry created by monopolies and their implications for competition.