Substitutes Erode Profits Because of Which of the Following Factor

Multiple Choice

Substitutes erode profits because of which of the following factor?

A) Substitutes compete for similar inputs driving up production costs
B) Substitutes divide demand and drive up internal rivalry
C) Firms producing substitutes use similar worker skills dividing the labor pool
D) Manufacturers of substitutes enter markets later and have lower sunk costs
E) None of the above