question archive Which tactic does a monopoly use to prevent competitors from entering into the market place? a
Which tactic does a monopoly use to prevent competitors from entering into the market place? a
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Which tactic does a monopoly use to prevent competitors from entering into the market place?
a. Higher prices
b. Lower supplies
c. Production controls
d. Barriers
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The correct option is d. Barriers.
A monopoly is able to maintain its power using barriers to entry and exit. This means that only is it difficult to enter the industry, it is also difficult to leave it without incurring high costs. Barriers to entry can be in the form of high initial investment required or extremely low prices in the market that other new firms cannot compete with.
