Monopoly firms in contestable markets view the major threat to an exploitation of monopoly power to be

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In contestable markets, the major threat to a monopoly's ability to exploit its market power is the potential competition from new entrants. This is because the presence or threat of new entrants into the market can limit the monopoly's ability to set prices above competitive levels without losing market share.

Monopoly Firms in Contestable Markets View the Major Threat to an Exploitation