How do regulatory policies impact the barriers to entry for new firms in a monopoly market?

Regulatory policies can greatly influence the barriers that new firms face when trying to enter a monopoly market. In a monopoly, one company controls the entire market, which makes it hard for new competitors to start. If the government creates strict regulations, such as requiring expensive licenses or safety standards, these can raise the costs for new firms, making it even harder for them to compete. For example, if a monopoly in the energy sector must follow complex environmental laws, new companies may find it too costly to meet those requirements, keeping them out of the market. Ultimately, these regulations can protect the monopoly by maintaining high barriers to entry, allowing it to continue maximizing its profits without competition.