Final answer:
When a potential entrant exists in a previously monopolistic market, consumers generally prefer it because it introduces competition and brings benefits such as more choices, lower prices, and improved products and services.
Step-by-step explanation:
When a monopoly exists in a market, there is only one firm that controls the entire industry and has no direct competitors. However, when a potential entrant exists, it means that another firm is considering entering the market to compete with the existing monopoly.
In this case, consumers would generally prefer the entry of a potential competitor because it introduces competition, which can lead to benefits such as more choices, lower prices, and improved products and services. With competition, the monopoly firm would need to adjust its pricing and quality to attract and retain customers.
Overall, the entry of a potential competitor in a previously monopolistic market can be seen as positive for consumers.