Identify the INCORRECT statement regarding profitability
A) Profits vary across products or brands in a category
B) Differences in profitability may be due to factors of production
C) Large inter-industry differences in profits exist
D) Profitability remains constant over time
E) Variance in profitability is often used as a measure of industry risk

Question

Quizplus · Accepted Answer

Profitability does not remain constant over time due to changes in market conditions, competition, costs, and consumer preferences.

Identify the INCORRECT Statement Regarding Profitability