In order for firms within an industry to be more likely to enjoy higher profitability, product differentiation should be high.

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Product differentiation allows firms to charge higher prices as consumers perceive their products as unique and worth paying a premium for. This leads to higher profitability as firms can achieve higher profit margins. Additionally, high product differentiation can create a stronger brand image and customer loyalty, reducing the threat of competition and further increasing profitability.

In Order for Firms Within an Industry to Be More