A monopolist can use its pricing strategy as a barrier to entry by other firms.

Name: A monopolist can use its pricing strategy as a barrier to entry by other firms.
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Question

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A monopolist can set prices low enough to deter entry by potential competitors, a strategy known as predatory pricing, or maintain high prices while exploiting economies of scale to keep costs low, making it difficult for new entrants to compete.

A Monopolist Can Use Its Pricing Strategy as a Barrier