The industrial organization economics perspective assumes that the industry _____________ is the most important determinant of long-run profitability.

Question

Quizplus · Accepted Answer

The industrial organization economics perspective suggests that the market structure, which includes the number of firms in the industry, their size, market share, and barriers to entry, is the most significant factor determining long-term profitability. This is because a firm's conduct and performance are influenced by the structure of the industry it operates in. Therefore, the correct option is A) Structure.

The Industrial Organization Economics Perspective Assumes That the Industry _____________