In an industry, the profits earned by firms are determined by

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Profits earned by firms in an industry are determined by several factors, including the value of the product for customers, the intensity of competition, and the relative bargaining powers of producers, their suppliers and their buyers. These are often referred to as the key drivers of profitability. While factors like the degree of concentration of the industry and the existence of barriers to entry can impact profitability, they are not as significant as the key drivers mentioned above. The overall economic situation and Porter's five forces of competition can also play a role, but they are not the primary determinants of profitability.

In an Industry, the Profits Earned by Firms Are Determined