Which of the following is a response that a monopolist should consider when it has new competitors threatening to enter its market?
A)Encouraging access to scarce resources
B)Introducing new products rarely
C)Innovating and patenting
D)Lowering entry barriers

Question

Quizplus · Accepted Answer

When faced with new competitors threatening to enter its market, a monopolist should consider innovating and patenting. This will enable the monopolist to maintain its monopoly power by creating a barrier to entry for potential competitors. Encouraging access to scarce resources and lowering entry barriers will only make it easier for new competitors to enter the market. Introducing new products rarely may not be an effective strategy as potential competitors may be able to offer similar or better products.

Which of the Following Is a Response That a Monopolist