Final answer:
Firms that are new or potentially entering an industry are called new competitors in the five forces framework, with barriers to entry playing a key role in the competitive landscape, and potentially leading to limited competition or monopoly.
Step-by-step explanation:
Firms that have either recently begun operations in an industry or that threaten to begin operations in an industry soon are considered to be new competitors in the five forces framework. Barriers to entry are influential in determining the competitive nature of the market and can range from minor impediments to highly restrictive forces. These barriers may include legal, technological, or market conditions that make it difficult for potential competitors to enter a market, potentially even leading to monopoly situations.
In a competitive market, the lure of profits can drive expansion and encourage entry into the industry. However, in markets with significant barriers to entry, high profits do not necessarily mean that new firms will enter the market to drive the price down to a normal profit level in the long run.