There are many ways that companies can use their market dominance to raise prices, thereby limiting the development of new entrants. Here are some common strategies: 1. **Pricing power**: When a monopoly is in place, a company often has pricing power in the market and can raise the entry cost for new entrants by raising the price of their products or services. High prices can make it difficult for new entrants to attract customers on price competition. 2. **Economy of scale**: Monopolies often have large production scales that allow them to produce products at a lower average cost. By raising market prices, they can capture excess profits while keeping production costs low, thereby accumulating funds to deal with possible new entrants. 3. **Increasing barriers to entry**: High prices can create higher barriers to entry for new entrants. For example, a monopoly can use its high profits to increase marketing, research and development, and brand building, which requires new entrants to invest more resources to compete. 4. **Market influence**: A monopoly can use its market influence to reach favorable agreements with companies up and down the supply chain, making it impossible for new entrants to get the same favorable terms. These agreements may include exclusive supply, price discounts, or restrictive terms. 5. **Cross-subsidization**: Companies can subsidize the operating costs of core products with profits from other products or services, thereby lowering the competitive prices of these core products to prevent new entrants. 6. **Build a loyal customer base**: Through membership programs, reward mechanisms or long-term contracts, increase customer switching costs, making it difficult for new entrants to seize market share, even if these new entrants offer lower prices. Although these strategies may be effective in the short term, raising prices is not always sustainable because it may attract the attention of regulators, leading to antitrust investigations and potential legal challenges. In addition, long-term high prices may also attract innovative entrants to find more cost-effective alternative products or services. Therefore, this requires companies to be strategically cautious.