Incumbents Are Unaffected by Fixed Costs of Entry While Potential

Multiple Choice

Incumbents are unaffected by fixed costs of entry while potential entrants are affected by them because

A) for potential entrants the cost is avoidable, while for the incumbent, it is not.
B) fixed costs will be greater for the potential entrant than for the incumbent.
C) fixed costs are zero for the incumbent.
D) incumbents will act to prevent entry at all costs.