The profits earned by firms in an industry,are determined by:
A)The intensity of competition among the firms within the industry
B)How much customers value the products supplied by the industry
C)The extent to which the industry is protected by barriers to entry
D)The value of the product tor customers,the intensity of competition,and the relative bargaining powers of producers,their suppliers and their buyers

Question

Quizplus · Accepted Answer

Profits earned by firms in an industry are determined by various factors such as the value of the product to customers, the intensity of competition among the firms, and the bargaining power of producers, suppliers, and buyers. These factors collectively influence the profitability of the industry. The protection afforded by barriers to entry is also a factor that may affect profitability, but it is not the only determining factor. Therefore, option D is the best choice as it takes all the relevant factors into account.

The Profits Earned by Firms in an Industry,are Determined By