Potential entrants are more likely to be deterred from actually entering an industry when:

Question $22$ options:

A$)$

the prices being charged by existing industry members all fall within a narrow range.

B$)$

industry incumbents are willing and able to launch strong offensive and defensive maneuvers to maintain their positions and make it harder for a newcomer to compete successfully and profitably.

C$)$

the industry already contains $10$ or more rivals.

D$)$

the relative cost positions of incumbent firms are about the same, such that one incumbent has a meaningful cost advantage.

E$)$

the product offerings of existing firms in the industry are weakly differentiated.