The five competitive forces model suggests the threat from potential entrants affects industry competition.

How might an existing firm deter entry of new firms?

An existing firm might

A. Engage in price leadership for price matching.

B. Charge higher prices to increase profits.

C. Downsize to produce less output.

D. Build a larger store to produce more outputbuild a larger store to produce more output.

E. Form a cartelform a cartel to raise prices.

It is not A.