The monopolist resorts to restriction of supply and charging of high prices because he a has the assurance that there are no competitors for him. Therefore, if the monopolist is faced with the likelihood of possible competition, he will not exercise his monopoly powers freely.

The monopolist employs various devices to injure and destroy rival firms. Therefore, the government should prohibit these unfair means of competitive commerce. 

However, implementing this policy’ is riot so easy:

1. The government can fix a price alone to regulate the rate reduction policy, but monopoly offers other types of concessions and exemptions to eliminate each other’s rivals.
2. New competitors have limited capital to successfully start production.
3. The monopolist leverages the mass production with reduced costs and increased efficiency. This is possible due to the well-established long-standing nature of monopoly firm.
4. The monopolist has a good financial position, so that he can spend a large amount on competitive advertising, which helps him to capture the market and to force competitors out.
5. The monopolist can set up his companies in his own name to sell the products of his rivals.
6. Existing firms have reputation and enjoy the goodwill of consumers, which makes it difficult for a new firm to successfully compete with it.