A company that operates in a highly competitive industry with low barriers to entry is likely to have low net operating profit margins compared to companies that operate in less competitive industries.

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This is because in a highly competitive industry, there are many firms vying for market share, resulting in lower prices and therefore lower profit margins. Additionally, with low barriers to entry, new firms can enter the industry easily, increasing competition and putting further pressure on profit margins. In contrast, companies operating in less competitive industries may have more pricing power and be able to command higher profit margins.

A Company That Operates in a Highly Competitive Industry with Low