When Entry and Exit Barriers Are High,________

When entry and exit barriers are high,________.

A) profit potential is high, but firms face more risk because poorer-performing firms stay in and fight it out
B) firms easily enter and leave the industry, and returns are stable and low
C) few new firms can enter the industry, and poorly performing firms can easily exit
D) firms enter during good times but find it hard to leave during bad times, resulting in chronic overcapacity and depressed earnings for all
E) none of the above

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