If a company's profitability is higher than the industry average, it has a competitive advantage.

Question

Quizplus · Accepted Answer

If a company's profitability is higher than the industry average, it means the company is doing better than its competitors and has a competitive advantage. This is because it may have lower costs, more effective strategies, or stronger customer loyalty, among other factors, that allow it to generate better profits.

If a Company's Profitability Is Higher Than the Industry Average