The cookie market is exploding in the United States with lots of new entrants coming onto the scene selling fresh, hot cookies for $$3$ each. Anyone who can afford to lease a small retail space and install an oven can enter. Cookie recipes are easy to find and copy. There is little government regulation. At the present time, these entrants are making TONS of profits and very little capital investment. Which statement best describes the market forces?

Group of answer choices

Attractive profits will be sustained due to high bargaining power of incumbents.

More companies will enter the market due to low barriers to entry, which will increase competition and reduce profits.

High barriers to entry will discourage others from entering the market.

The presence of substitutes makes this market even more attractive.