According to I/O theorists, which of the following contributes LEAST to firm's performance?
A) Economies of scale
B) Barriers to market entry
C) Product differentiation
D) Internal resources
E) Level of competitiveness

Question

Quizplus · Accepted Answer

According to I/O (Industrial Organization) theory, the focus is on the external environment and how it influences a firm's performance. Internal resources (D) are considered less by I/O theorists, who emphasize factors like economies of scale, barriers to market entry, product differentiation, and the level of competitiveness in the industry as more significant contributors to a firm's success.

According to I/O Theorists, Which of the Following Contributes LEAST