Other firms will be attracted to a monopolist's market because of extra-normal profits. The monopolist, therefore, must be prepared to develop a strategy that will

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Preventing the entry of potential rivals is the best choice in this scenario. If the monopolist colludes with potential rivals, it could be considered illegal and face legal consequences. In a perfectly competitive market, the monopolist would lose its monopoly power and its extra-normal profits. Thus, the best option is to prevent entry by creating barriers to entry that will discourage other firms from entering the market. This could be achieved through patents, economies of scale, exclusive contracts, or other strategies.

Other Firms Will Be Attracted to a Monopolist's Market Because