The basic premise of industry analysis is that:
A)Perfect competition and monopoly are the basic models,most industries lie between these two extremes
B)The level of profitability within an industry is determined by the systematic influence of the industry structure which determines the intensity of competition in the industry
C)Industry profitability depends upon the interaction among competing firms
D)Technology and consumer demand are the basic forces that shape industry structure

Question

Quizplus · Accepted Answer

Industry analysis is based on the belief that the structure of an industry determines its profitability level. This structure is determined by the intensity of competition within the industry, which is influenced by various factors, including the number and size of firms in the industry, the level of product differentiation, barriers to entry, and the bargaining power of suppliers and customers. The level of profitability is higher in industries with fewer competitors, high barriers to entry, and high bargaining power of the firms.

The Basic Premise of Industry Analysis Is That