Identify a factor that determines the level of competition and long-term profitability of an industry.

a. The degree of rivalry between competitors is low in industries with many equally sized competitors.
b. The threat of substitute products can increase the profitability of industry competitors.
c. The bargaining power of suppliers doesn’taffect the industry’s profitability.
d. The threat of new competitors raises the level of competition.

d. The threat of new competitors raises the level of competition.
The threat of new competitors will raise the level of competition. Entry barriers determine the relative threat of new competitors. These barriers include the capital required to enter the industry and the cost to customers to switch to a competitor.