Multiple Choice QuestionMonopolists use economies of scale to block the entry of new firms into an industry by Blank______.Multiple choice question.raising prices because a monopolist's cost per unit is very highproducing a surplus of goods and flooding the marketdeveloping innovative technologies that make it difficult for another firm to competelowering prices so that another firm cannot compete

The correct answer is: "lowering prices so that another firm cannot compete".

Here's why:

Monopolists, by definition, are the only sellers in a particular market. They have the power to control the price of the goods or services they provide. One strategy they can use to prevent new firms from entering the market is to lower their prices.

When a monopolist lowers their prices, it makes it difficult for new firms to compete. New firms, especially smaller ones, may not have the resources to produce goods or services at such a low cost. As a result, they may not be able to enter the market at a competitive price point.

This strategy is known as predatory pricing. It's a risky strategy, as it can lead to losses for the monopolist in the short term. However, if it successfully deters new firms from entering the market, it can allow the monopolist to maintain their market dominance in the long term.

The other options are not typically strategies used by monopolists to block the entry of new firms. Raising prices or producing a surplus of goods does not necessarily prevent new firms from entering the market. Developing innovative technologies can provide a competitive advantage, but it doesn't directly block new firms from entering the market.