If an insecure monopolist needs to determine what strategy will be best to prevent a second firm from entering the market,what could be the key variable to use when determining the best strategy?

Question

Quizplus · Accepted Answer

The key variable for an insecure monopolist to prevent a second firm from entering the market would be the minimum entry quantity. This refers to the smallest scale at which a new entrant can operate viably. By understanding this, the monopolist can strategize to make market entry less attractive or viable for potential competitors, for example, by ensuring that the market cannot profitably support another firm at or above this scale.

If an Insecure Monopolist Needs to Determine What Strategy Will