The attractiveness of an industry is ________.
A)unregulated by the general environment
B)the extent to which a firm has control over its profitability
C)the degree to which an average firm in the industry can earn good profits
D)dependent on the number of large firms that are operating in an industry

Question

Quizplus · Accepted Answer

The attractiveness of an industry is determined by the degree to which an average firm in the industry can earn good profits. This takes into account factors such as the level of competition, barriers to entry, and availability of substitutes. Therefore, Option C is the correct choice. Option A is incorrect as the general environment can have a significant impact on industry attractiveness. Option B is incorrect as the control over profitability depends on the firm's internal factors, rather than industry attractiveness. Option D is incorrect as large firms can both positively and negatively affect industry attractiveness.

The Attractiveness of an Industry Is ________