The Level of Entry Barriers Is Only Relevant to Potential

Multiple Choice

The level of entry barriers is only relevant to potential competitors because:

A) Firms that are established in an industry have already overcome the barriers to entry.
B) The existence of high entry barriers has little impact on overall industry profitability.
C) Competitive markets are dynamic, so established firms expect that there will always be new entrants.
D) The level of entry barriers is relevant to both existing and potential firms due to the competitive consequences for both.