Which of the Following Is TRUE About the Threat of New

Multiple Choice

Which of the following is TRUE about the threat of new entrants?

A) New entrants often increase capacity within the industry.
B) The easier to enter an industry,the higher the profit margins and growth potential.
C) If competitors are strong,existing competitors will not react strongly to any new entrants.
D) If there are huge barriers to entry,competitors will be attracted to the industry.