Assuming the average cost curve lies above the entrant's residual demand curve, an entrant:

Assuming the average cost curve lies above the entrant's residual demand curve, an entrant:Can profitably enter the marketII) Is indifferent between entering and not entering the marketIII) Will benefit from learning by doing if he enters the market IV) Should play limit pricing games in order to gain a market share V) Can't profitably enter the market